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Immersion Corporation IMMR is expected to report third-quarter 2024 results this week.
The Zacks Consensus Estimate for revenues is pegged at $10.13 million, suggesting a 6.9% year-over-year increase. The consensus mark for earnings stands at 15 cents per share, unchanged over the past 60 days, implying an impressive 87.5% surge from the year-ago figure of 8 cents.
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As a leading developer and licensor of touch feedback (haptic) technology, Immersion has shown a consistent performance in surpassing earnings expectations. The company’s earnings have topped the Zacks Consensus Estimate three times in the past four quarters, with an average surprise of 50.6%.
Immersion Corporation Price and EPS Surprise
Immersion Corporation price-eps-surprise | Immersion Corporation Quote
Factors Shaping IMMR’s Upcoming Results
Immersion’s third-quarter performance is likely to have benefited from the rising demand for its haptic technology across key sectors such as gaming, automotive and consumer electronics. The push for enhanced user experiences, propelled by new product launches and strategic partnerships, is likely to have bolstered sales of its patented solutions.
The increasing adoption of virtual reality (VR) and augmented reality (AR) technologies, which rely on haptic feedback for immersive experiences, may have driven demand for Immersion’s offerings. Revenue growth in the to-be-reported quarter is also expected to have been supported by expanded licensing agreements and royalty income from prominent OEMs (original equipment manufacturers) in these emerging tech markets.
Immersion’s strategic initiatives aimed at broadening its product range and entering new markets, coupled with efficient cost management, could have enhanced operational efficiency and improved profit margins. The company’s focus on expanding its intellectual property (IP) portfolio and securing new licensing deals is likely to have played a pivotal role in boosting revenue and earnings growth in the third quarter.
Immersion’s Price Performance & Valuation
Year to date (YTD), shares of Immersion have soared 22.4%, outperforming the Zacks Computer - Peripheral Equipment industry’s decline of 35.7%. The IMMR stock has also outperformed other players in the space, including Logitech LOGI, TransAct Technologies TACT and Identiv INVE, which have registered a decline of 18.7%, 42.1% and 54.2%, respectively, YTD.
YTD Price Return Performance
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