Immersion Corporation crushed on earnings and revenue. The company reported EPS of $2.34 versus the $0.65 estimate. Revenue also crushed it, coming in at $85.42 million during the quarter, versus the $57.7 million estimate. Immersion’s quarterly revenue was up 826.5% year-over-year.
Immersion entered into a settlement and license agreement with Apple Inc. for certain Immersion patents that Immersion said Apple infringed upon. Apple settled with Immersion. That could be adding a big boost to Immersion’s bottom line. Immersion is also going after Samsung for the infringing on the same patents that Apple did. There’s a good chance Samsung will settle with Immersion too.
Immersion is expanding into the automotive space. Immersion also signed a multi-year license agreement with Robert Bosch Car Multimedia GmbH, a subsidiary of Robert Bosch GmbH, providing Bosch with access to Immersion’s patented haptic technology for use in its automotive solutions. Immersion also signed a license agreement with Panasonic Corp. providing Panasonic with access to Immersion’s patented haptic technology for use in its automotive solutions.
Are you ready for a big WTF moment?
Check out the revenue chart and keep in mind, Immersion’s revenue was $85.42 million during the most recent quarter.
Are you kidding me? Immersion made $85.42 million during the most recent quarter which is almost 200% of all the revenue made in 2017! In fact, Immersion just blew by their 2015 high!
Immersion Stock Chart
IMMR stock doesn’t look extremely strong, until you look at what happened today in the after hours market.
IMMR stock has exploded up to $13.42 in after hours trading today.
I give IMMR stock a buy rating. Most analysts agree. Overall there are no sell ratings, no hold ratings, and 4 buy ratings on the stock.
Looking at the level II quotes, resistance was last at $14.30 and $15.
Of course the level II quotes will change in pre-market trading tomorrow but short term, $15 looks like a major resistance level.
This is a long term buy and hold play IMO unless it spikes way up and you have to secure the bag quickly.