Pixelworks Inc Down 15.46% To $2.11 After Earnings

Pixelworks, Inc. (PXLW) missed earnings projections on 8/10/2022 for Q2 2022.

The company reported an EPS loss of $0.06 per share. The firm reported an EPS loss of $0.05 per share in the year-ago quarter. The decline in Pixelworks Inc's annual growth rate represents how the business isn't performing well amid current economic conditions.

Consensus analyst estimates were at $18.7 million. The Technology company managed to surpass those expectations for its second quarter with revenue of $19.1 million, a positive revenue surprise of $408 thousand (2%). The firm managed 36% growth year-over-year due to Pixelworks Inc reporting quarterly revenue of $14.1 million in its year-ago quarter. Pixelworks Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 15.46% to $2.11 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 67. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Pixelworks Inc is a part of the technology sector in the United States. It provides high-performance and power-efficient visual processing solutions. It develops and markets semiconductor and software solutions that enable consistently high-quality, authentic viewing experiences in a wide variety of applications from cinema to smartphones. The company's primary target markets include Mobile, Home Entertainment, Content, and Business and Education. It generates maximum revenue from integrated circuit products and geographically from Japan.