Pixelworks (PXLW) Reports Q3 Loss, Lags Revenue Estimates

Core Insights - Pixelworks reported a quarterly loss of $0.69 per share, better than the Zacks Consensus Estimate of a loss of $0.86, and an improvement from a loss of $1.44 per share a year ago, resulting in an earnings surprise of +19.77% [1] - The company generated revenues of $8.77 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.54% and down from $9.53 million year-over-year [2] - Pixelworks shares have declined approximately 30% year-to-date, contrasting with the S&P 500's gain of 16.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.74 on revenues of $10 million, and for the current fiscal year, it is -$3.90 on revenues of $34.3 million [7] - The estimate revisions trend for Pixelworks was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Electronics - Semiconductors industry, to which Pixelworks belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Ambarella, is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year increase of +90.9%, with revenues projected at $104.11 million, up 26% from the previous year [9][10]