Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify potential candidates [3] Group 2: Pixelworks (PXLW) Analysis - Pixelworks (PXLW) has shown a four-week price change of 19.5%, indicating strong investor interest and recent price momentum [4] - Over the past 12 weeks, PXLW has gained 11.3%, and its beta of 1.65 suggests it moves 65% more than the market in either direction, indicating fast-paced momentum [5] - PXLW has a Momentum Score of B, suggesting it is an opportune time to invest in the stock for potential success [6] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - PXLW is trading at a Price-to-Sales ratio of 0.97, indicating it is relatively undervalued, as investors pay only 97 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides PXLW, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, providing additional avenues for stock selection [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Pixelworks due to lower revenues, with a focus on how actual results will compare to estimates to influence stock price [1][2]. Earnings Expectations - Pixelworks is expected to report a quarterly loss of $0.09 per share, reflecting an 80% decrease year-over-year, with revenues projected at $9.5 million, down 52.7% from the previous year [3]. - The earnings report is scheduled for February 12, 2025, and could lead to stock price movement depending on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 15.39% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [6][7]. - Pixelworks currently holds a Zacks Rank of 2, but the combination of a 0% Earnings ESP makes it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, Pixelworks was expected to post a loss of $0.13 per share but delivered a loss of $0.12, resulting in a surprise of +7.69% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - While Pixelworks does not appear to be a strong candidate for an earnings beat, monitoring additional factors is essential for investment decisions [16].

Core Viewpoint - Pixelworks, Inc. is set to release its fourth quarter and fiscal 2024 financial results on February 12, 2025, after market close, with a conference call scheduled to discuss these results [1]. Company Information - Pixelworks, Inc. specializes in innovative video and display processing solutions, providing technology that enhances viewing experiences across various screens, including cinema and smartphones [3]. - The company has over 20 years of experience in delivering image processing innovations to major players in consumer electronics, professional displays, and video streaming services [3].

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Expanded Frame Rate Capability and Enriched Visual Effect Options Offer Compelling yet Affordable Visual Quality Upgrades SHANGHAI, Dec. 26, 2024 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of visual processing solutions, announced that the newly released iQOO Z9 Turbo L smartphone is equipped with Pixelworks' X5 Turbo visual processor. The integration solution provides targeted frame rate optimization for multiple popular mobile games, extending the play time for high-frame-rate gam ...

Pixelworks (PXLW) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this maker of chips used in high-end digital video devices would post a loss of $0.15 per share when it actually produced a loss of $0.13, delivering a surprise of 13.33%.Over the last ...

Financial Performance - Net revenue for Q3 2024 was $9.5 million, a decrease of 41% compared to $16.0 million in Q3 2023, and for the first nine months of 2024, it was $34.1 million, down 14% from $39.6 million in the same period of 2023[105]. - Integrated circuit (IC) product sales in Q3 2024 decreased by approximately $6.3 million or 76% in the Mobile market due to decreased units sold[105]. - Gross profit margin increased to 51% in Q3 2024 from 43% in Q3 2023, attributed to higher average selling prices in the Home & Enterprise market and decreased costs on Mobile products[109]. - Total cost of revenue for Q3 2024 was $4.6 million, representing 49% of revenue, compared to $9.2 million or 57% of revenue in Q3 2023[107]. - Selling, general and administrative expenses decreased by $0.8 million, or 13%, in Q3 2024 compared to Q3 2023, primarily due to reduced accounting fees and compensation expenses[115]. Research and Development - Research and development expenses for Q3 2024 were $8.4 million, a decrease of 4% from $8.8 million in Q3 2023, primarily due to reduced headcount and cost control measures[113]. - The company recorded negligible benefits from the reversal of previously recorded foreign tax contingencies during the first nine months of 2024[117]. - The company has 263 patents and 13 pending patent applications as of September 30, 2024, to protect its significant technologies[235]. Cash and Liquidity - Total cash and cash equivalents decreased by $18.7 million to $28.8 million as of September 30, 2024, from $47.5 million at December 31, 2023, due to operating activities and capital expenditures[119]. - The company anticipates that existing working capital will be adequate to fund operations for at least the next twelve months, but may seek additional financing if necessary[126]. - The company received net proceeds of $42.3 million from a Capital Increase Agreement related to its subsidiary PWSH[123]. - An Equity Transfer Agreement resulted in net proceeds of $10.7 million for a 2.73% equity interest in PWSH[125]. Market and Sales - Sales into the Home & Enterprise market decreased by approximately $0.2 million or 3% in Q3 2024 compared to Q3 2023[105]. - Sales outside the U.S. accounted for approximately 97.9%, 99.7%, and 95.1% of revenue for the nine months ended September 30, 2024, and the years ended December 31, 2023, and 2022, respectively[171]. - Revenue from the top five end customers accounted for 88%, 87%, and 76% of revenue for the nine months ended September 30, 2024, and the years ended December 31, 2023 and 2022, respectively[156]. - The company relies on a limited number of customers and distributors, increasing credit risk and potential revenue volatility[155]. Operational Challenges - The company has experienced difficulty in hiring and retaining qualified engineering personnel, particularly in its Shanghai design center[148]. - The company faces challenges in managing its supply chain due to dependence on distributors and integrators, which may result in excess inventory or inventory shortages[186]. - The company is dependent on third-party technology licenses, which may not be available on acceptable terms, potentially harming product competitiveness[233]. - The company does not own semiconductor fabrication facilities and relies on foundries, which may lead to delays in satisfying customer demand and increased costs[204]. Strategic Initiatives - The strategic plan aims to qualify Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. for an initial public offering on the STAR Market, although market conditions remain unfavorable[103]. - The company continues to evaluate acquisition opportunities to leverage its technology into high-value markets[102]. - The Company’s strategic plan aims to transform PWSH into a profit center to improve access to capital, customers, and talent in China, but success is uncertain due to regulatory risks and geopolitical tensions[258]. Risks and Compliance - The company is exposed to risks from fluctuations of foreign currencies, primarily those of Japan, Taiwan, China, and Canada, which could lead to a reduction in revenue[175]. - The company faces legal and operational risks related to the evolving PRC legal system, which may limit legal protections and adversely affect business operations[250][251]. - The effective income tax rate is subject to unanticipated changes and complex forecasting, which could materially affect future results of operations[194]. - The company is subject to the Foreign Corrupt Practices Act and other anti-corruption laws, which could result in penalties if violated[179]. Future Outlook - The company may seek additional financing, which could dilute existing shareholders and impose restrictions on operations[164]. - The company’s inability to expand PRC operations could materially limit revenue growth and overall business performance[261]. - Regulatory changes in China can occur quickly, potentially impacting the Company’s ability to conduct business and accept foreign investments[253]. - The STAR Market is relatively new, making it difficult to predict the effects of the proposed Listing on stock prices[269]. Stock and Shareholder Impact - The company received a Bid Price Deficiency Notice from Nasdaq on September 11, 2024, indicating non-compliance with the minimum bid price requirement of $1.00 per share[283]. - The company must meet at least one of the Nasdaq continued listing requirements, including a minimum of $50 million in total asset value or revenues[284]. - Future sales of equity could result in significant dilution to existing shareholders and depress the market price of common stock[279]. - The company completed a private placement of 3,200,000 shares at a price of $2.071 per share, which had a dilutive impact on existing shareholders[280].

Financial Performance - Total revenue for Q3 2024 was $9.5 million, a 12% increase sequentially from $8.5 million in Q2 2024, but a decrease from $16.0 million in Q3 2023[5] - GAAP gross margin improved to 51.2%, up 50 basis points sequentially and 800 basis points year-over-year from 42.9% in Q3 2023[6] - GAAP operating expenses decreased to $13.5 million in Q3 2024, down from $15.1 million in Q2 2024 and $14.5 million in Q3 2023[6] - The company recorded a GAAP net loss of $8.1 million, or ($0.14) per share, compared to a net loss of $10.1 million, or ($0.17) per share in Q2 2024[8] - Adjusted EBITDA for Q3 2024 was a negative $6.3 million, an improvement from a negative $7.0 million in Q2 2024[9] - GAAP gross profit for the three months ended September 30, 2024, was $4,879 million, compared to $4,326 million for the same period in 2023, representing a 12.7% increase[20] - Non-GAAP net loss attributable to Pixelworks Inc. for the three months ended September 30, 2024, was $(7,083) million, compared to $(7,731) million for the same period in 2023[24] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(16,512) million, compared to $(16,841) million for the same period in 2023[24] - Non-GAAP net loss per share for the three months ended September 30, 2024, was $(0.12), compared to $(0.13) for the same period in 2023[21] Cost Management - The company anticipates continued cost reduction actions will lead to improved operating results and renewed top-line momentum in mobile[4] - Total reconciling items included in operating expenses for the three months ended September 30, 2024, were $1,119 million, down from $2,318 million in the same period last year[20] - Stock-based compensation for the three months ended September 30, 2024, was $1,042 million, compared to $925 million for the same period in 2023[24] - GAAP operating expenses for the three months ended September 30, 2024, were $13,511 million, down from $15,068 million in the same period last year[20] Assets and Liabilities - Total current assets decreased from $64,725 thousand in December 2023 to $39,734 thousand in September 2024, a decline of approximately 38.7%[25] - Cash and cash equivalents dropped significantly from $47,544 thousand to $28,830 thousand, representing a decrease of about 39.5%[25] - Total liabilities decreased from $30,957 thousand in December 2023 to $26,968 thousand in September 2024, a reduction of approximately 12.8%[26] - Total shareholders' equity fell from $36,798 thousand to $15,649 thousand, a decline of about 57.5%[26] - Current liabilities decreased from $12,297 thousand to $9,896 thousand, a reduction of approximately 19.5%[26] - Accounts receivable decreased from $10,075 thousand to $4,497 thousand, a decline of about 55.4%[25] - Inventories increased from $3,968 thousand to $4,398 thousand, an increase of approximately 10.8%[25] - Operating lease liabilities decreased from $2,567 thousand to $2,065 thousand, a reduction of about 19.6%[26] - The company reported a net loss in shareholders' equity, indicating potential challenges in financial performance and stability[26] - Goodwill remained unchanged at $18,407 thousand, indicating no impairment or changes in this asset category[25] Strategic Partnerships and Developments - The company has entered into a multi-year agreement with Universal Pictures to utilize TrueCut Motion technology for future theatrical releases[2] - Production qualification of the next-generation mobile visual processor has been completed, with multiple customer engagements for upcoming smartphone programs[3] - Pixelworks Shanghai subsidiary received recognition with the "Little Giant" certification, indicating significant growth potential[2] Profitability Metrics - Non-GAAP gross profit margin for Q3 2024 was 51.3%, compared to 51.0% in Q2 2024 and 43.1% in Q3 2023[7] - Non-GAAP gross profit margin for September 30, 2024, was 51.3%, up from 43.1% in September 30, 2023[23] - GAAP net loss attributable to Pixelworks Inc. for the nine months ended September 30, 2024, was $(23,356) million, compared to $(22,432) million for the same period in 2023[24]

PORTLAND, Ore., Nov. 12, 2024 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, today announced financial results for the third quarter ended September 30, 2024.Third Quarter and Recent Highlights Total revenue increased 12% sequentially GAAP gross margin expanded more than 50 basis points sequentially and 800 basis point year-over-year to 51.2%, primarily driven by favorable product mix and lower overhead expenses Entered into multi-ye ...

PORTLAND, Ore., Oct. 24, 2024 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, will release its third quarter 2024 financial results on Tuesday, November 12, 2024, after market close. Todd DeBonis, President and CEO, and Haley Aman, CFO, will host a conference call at 2:00 p.m. Pacific Time to discuss the Company's financial results.Analysts and investors are invited to join the Company's conference call using the following information ...