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Sitting at a #1 (Strong Buy) on the Zacks Rank, Immersion Corp. (IMMR - Free Report) is a company that develops hardware and software technologies that enable users to interact with computers using touch feedback. Their patented technologies like TouchSense let devices like computer mice, joysticks, knobs, and medical simulation products deliver tactile sensations that correspond to on-screen events.
Immersion focuses on four application areas: computing and entertainment; medical simulation; professional and industrial; and three-dimensional capture and interaction.
Shares Rally on Strong Q1 Earnings
Earlier this month, Immersion reported strong Q1 numbers across the board, and shares rallied 9% as a result.
Earnings of $2.34 per share soared past the Zacks Consensus of $1.39 per share, while record revenues of $85.4 million handily beat our consensus estimate of $30 million as well.
Royalty and license revenues were $85.3 million for the quarter, and operating expenses saw a 31% year-over-year decline.
Additionally, IMMR noted that it entered into a settlement and license agreement with iPhone giant Apple (AAPL - Free Report) for certain patents.
The company raised its guidance, and now expects fiscal 2018 revenues to be between $108 million and $118 million, with non-GAAP net income to fall in the range of $59 million and $67 million.
Earnings Outlook
For IMMR, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow almost 73% for the current quarter, though one analyst has cut their outlook recently.
Fiscal 2018 figures are looking pretty great, with two upwards estimates in the past 60 days. The Zacks consensus estimate trend has jumped from $1.34 per share to $2.03 per share.
While earnings are expected to decline over 34% for fiscal 2019, the tech company does have a long-term (3-5 years) earnings growth rate of 15%.
IMMR has an average earnings surprise of +27.6%.
IMMR: What’s Next for the Stock?
Shares of Immersion have gained over 108% since the start of the year and about 74.6% in the past one-year period. In comparison, the S&P 500 has gained 1.2% and around 13%, respectively.
IMMR is currently trading at a forward P/E of 6.9X.
Its industry, Computer-Peripheral Equipment, has lost about 8% year-to-date, but the group sits in the top 17% of all industries ranked by the Zacks Industry Rank. And, IMMR is one of the top performers, especially when compared to industry peers like Stratasys (SSYS - Free Report) and LG Display Co. (LPL - Free Report) .
Taking into account its impressive industry standing, as well as its expected earnings growth, Immersion Corp. could be an exciting opportunity for investors looking to get in to the broader computer space.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Bull of the Day: Immersion Corp. (IMMR)
Sitting at a #1 (Strong Buy) on the Zacks Rank, Immersion Corp. (IMMR - Free Report) is a company that develops hardware and software technologies that enable users to interact with computers using touch feedback. Their patented technologies like TouchSense let devices like computer mice, joysticks, knobs, and medical simulation products deliver tactile sensations that correspond to on-screen events.
Immersion focuses on four application areas: computing and entertainment; medical simulation; professional and industrial; and three-dimensional capture and interaction.
Shares Rally on Strong Q1 Earnings
Earlier this month, Immersion reported strong Q1 numbers across the board, and shares rallied 9% as a result.
Earnings of $2.34 per share soared past the Zacks Consensus of $1.39 per share, while record revenues of $85.4 million handily beat our consensus estimate of $30 million as well.
Royalty and license revenues were $85.3 million for the quarter, and operating expenses saw a 31% year-over-year decline.
Additionally, IMMR noted that it entered into a settlement and license agreement with iPhone giant Apple (AAPL - Free Report) for certain patents.
The company raised its guidance, and now expects fiscal 2018 revenues to be between $108 million and $118 million, with non-GAAP net income to fall in the range of $59 million and $67 million.
Earnings Outlook
For IMMR, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow almost 73% for the current quarter, though one analyst has cut their outlook recently.
Fiscal 2018 figures are looking pretty great, with two upwards estimates in the past 60 days. The Zacks consensus estimate trend has jumped from $1.34 per share to $2.03 per share.
While earnings are expected to decline over 34% for fiscal 2019, the tech company does have a long-term (3-5 years) earnings growth rate of 15%.
IMMR has an average earnings surprise of +27.6%.
IMMR: What’s Next for the Stock?
Shares of Immersion have gained over 108% since the start of the year and about 74.6% in the past one-year period. In comparison, the S&P 500 has gained 1.2% and around 13%, respectively.
Immersion Corporation Price and Consensus
Immersion Corporation Price and Consensus | Immersion Corporation Quote
IMMR is currently trading at a forward P/E of 6.9X.
Its industry, Computer-Peripheral Equipment, has lost about 8% year-to-date, but the group sits in the top 17% of all industries ranked by the Zacks Industry Rank. And, IMMR is one of the top performers, especially when compared to industry peers like Stratasys (SSYS - Free Report) and LG Display Co. (LPL - Free Report) .
Taking into account its impressive industry standing, as well as its expected earnings growth, Immersion Corp. could be an exciting opportunity for investors looking to get in to the broader computer space.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>