On Wednesday Pixelworks, a chip and software maker for the advanced display industry, raised the fourth-quarter guidance to 3 cents earnings per share (GAAP). Analyst Michael Kim says the fourth quarter is above his estimates and previous guidance. He notes due to robust growth across each market segment, Pixelworks sees $40.5 million in fourth-quarter revenues, vs. the earlier guidance of $37 million to $38.5 million, and 9 cents pro forma earnings per share, vs. the previous guidance of 6 cents to 7 cents per share.
Kim believes Pixelwork's outperformance in the fourth quarter was primarily driven by robust growth in the advanced television market. He notes management also provided stronger-than-expected gross margin guidance. He raised the 19 cents 2003 earnings per share estimate to 22 cents, and upped the 29 cents 2004 estimate to 37 cents. Kim also raised the price target to $17.