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Bull Of The Day: Immersion (IMMR)

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Immersion (IMMR - Free Report) is a Zacks Rank #1 (Strong Buy) that has a B for Value and an C for Growth.  This is company makes peripheral computer equipment that is used in smartphones, game controllers and there are expanding deeper into the automotive segment as well. Let’s explore more about this company in this Bull of The Day article.


Immersion Corp. engages in the creation, design, development and licensing of patented haptic innovations and software. The firm offers touch sense platform and design services. It focuses on the following target application areas: mobile devices, wearable, consumer, mobile entertainment and other content, console gaming, automotive, medical, and commercial. The company was founded in 1993 and is headquartered in Aventura, FL.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For Immersion, I see two beats, one earnings meet and one miss of the Zacks Consensus Estimate over the last year.  The average positive earnings surprise over the last year works out to be a positive 39%.

Two quarters ago the company posted EPS of $0.49 when $0.19 was expected.  That 30 cent beat translated into a positive earnings surprise of 158% and skewed the average over the last year.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

The consensus estimate for the current quarter has increased from $0.14 to $0.15.

Next quarter has held still over the last sixty days.

The full fiscal year 2024 estimate has moved from $1.11 to $1.17 over the last 60 days.

Next year does not have an estimate at this time.


The forward PE multiple for IMMR is 8.3x which is well below the market multiple and the multiple of many of its peers.  The price to book multiple comes in at 1.5x and the price to sales multiple checks in at 4.4x.  The company has seen operating margins steadily increase from 5.26% to 5.75% and most recently at 6.35%.  When a company has growing revenue (519% in the most recent quarter) and expanding margins we often expect to see higher earnings.  

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