The latest trading session saw Immersion (IMMR) ending at $7.11, denoting a -1.93% adjustment from its last day's close. This change lagged the S&P 500's 0.77% loss on the day. Elsewhere, the Dow saw a downswing of 0.95%, while the tech-heavy Nasdaq depreciated by 0.87%.The touch-based technology company's stock has climbed by 5.53% in the past month, falling short of the Computer and Technology sector's gain of 16.73% and the S&P 500's gain of 11.54%.Market participants will be closely following the financ ...

The Zacks Computer-Peripheral Equipment industry players like Logitech (LOGI) , Immersion (IMMR) and TransAct Technologies (TACT) are well-poised to benefit from the growing demand for professional gaming accessories, touchscreen and wireless devices, smart glasses and RFID (Radio Frequency Identification) solutions. A continuously improving shipment of personal computers (PCs) bodes well for PC peripheral market prospects. Moreover, the solid demand for 3D-printed health equipment like face shields, nasal ...

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Financial Performance - Total revenues for the third quarter of fiscal 2025 were $474.8 million, a significant increase from $9.5 million in the same period of the previous year[3] - GAAP net income attributable to Immersion stockholders was $15.5 million, or $0.47 per diluted share, compared to $2.7 million, or $0.08 per diluted share, in the prior year[3] - Non-GAAP net income attributable to Immersion stockholders was $20.8 million, or $0.63 per diluted share, up from $3.7 million, or $0.11 per diluted share, year-over-year[3] - Net income attributable to Immersion stockholders for the three months ended January 31, 2025, was $15,472,000, compared to $2,680,000 for the same period in 2023, reflecting a growth of 474%[27] - Non-GAAP net income attributable to Immersion stockholders for the three months ended January 31, 2025, was $20,843,000, up from $3,676,000 in the same period last year, indicating a 467% increase[27] - Earnings per diluted share attributable to Immersion stockholders for the three months ended January 31, 2025, was $0.63, compared to $0.11 for the same period in 2023, marking a substantial rise[27] - Operating income for the three months ended January 31, 2025, was $26,206,000, compared to $6,519,000 for the same period in 2023, reflecting a growth of 302%[24] Expenses and Liabilities - GAAP operating expenses increased to $79.6 million from $3.0 million in the same quarter last year[3] - Total operating expenses for the three months ended January 31, 2025, were $79,613,000, compared to $2,963,000 for the same period in 2023, showing a significant increase[29] - Non-GAAP operating expenses for the three months ended January 31, 2025, were $74,242,000, compared to $1,967,000 for the same period in 2023, highlighting a substantial increase[29] - The company reported a provision for income taxes of $17,417,000 for the three months ended January 31, 2025, compared to $1,285,000 for the same period in 2023, indicating a significant rise in tax obligations[24] - Total liabilities rose to $804.250 million as of January 31, 2025, compared to $45.291 million as of April 30, 2024[21] Shareholder Returns and Equity - The company returned over $9 million to shareholders through dividends and buybacks during the quarter[4] - The company plans to pay a quarterly dividend of $0.045 per share on April 25, 2025[7] - Immersion's total stockholders' equity attributable to Immersion Corporation stockholders was $319.166 million as of January 31, 2025, up from $201.230 million in the previous year[21] Asset Growth - Total current assets increased to $925.975 million as of January 31, 2025, compared to $190.608 million as of April 30, 2024[18] Acquisitions - Immersion acquired a 42% stake in Barnes & Noble Education, which was later reduced to 32.3% due to additional stock issuances[2] Other Income - Interest and other income for the three months ended January 31, 2025, was $14,803,000, compared to an expense of $2,554,000 in the same period last year, indicating a positive shift[24] Stock Information - The weighted average common stock outstanding for diluted shares was 33,055,000 for the three months ended January 31, 2025, compared to 32,750,000 for the same period in 2023[27]

Core Insights - Immersion (NASDAQ: IMMR) has transitioned from being primarily a licensor of haptic technology to functioning more as a holding company in recent years [1] Group 1 - The company previously focused on licensing haptic technology but is now more involved in holding investments [1]

Company Performance - Immersion (IMMR) closed at $8.05, down 1.83% from the previous session, underperforming the S&P 500's loss of 1.59% [1] - The stock has decreased by 2.61% over the past month, while the Computer and Technology sector has lost 4.81% and the S&P 500 has declined by 2.23% [1] Analyst Estimates - Analysts and investors are closely monitoring Immersion's upcoming earnings disclosure, with recent changes to analyst estimates indicating shifts in near-term business trends [2] - Positive changes in estimates reflect analyst optimism regarding the company's business and profitability [2] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows Immersion currently holds a Zacks Rank of 3 (Hold) [4] - Immersion's Forward P/E ratio is 5.22, which is lower than the industry average Forward P/E of 8.48, indicating a valuation discount [4] Industry Overview - The Computer - Peripheral Equipment industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 50, placing it in the top 20% of over 250 industries [5] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5]

Core Viewpoint - Immersion's stock performance has lagged behind major indices, and upcoming financial results and analyst estimate revisions are critical for assessing the company's outlook [1][2]. Company Performance - Immersion's stock closed at $8.30, reflecting a slight increase of +0.12% from the previous day, which is lower than the S&P 500's gain of 0.39% [1]. - Over the past month, Immersion's stock has decreased by 3.38%, underperforming the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 1.7% [1]. Analyst Estimates - Market participants are keenly awaiting Immersion's financial results, and any recent changes to analyst estimates are significant as they indicate near-term business trends [2]. - Positive revisions in estimates are interpreted as favorable signs for the company's business outlook [2]. Zacks Rank and Valuation - Immersion currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [4]. - The company is trading at a Forward P/E ratio of 5.28, which is significantly lower than the industry average Forward P/E of 13.29, suggesting that Immersion is undervalued [5]. Industry Context - Immersion operates within the Computer - Peripheral Equipment industry, which is part of the broader Computer and Technology sector [5]. - The industry has a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries, indicating strong relative performance [5][6].

Company Performance - Immersion (IMMR) closed at $8.51, with a daily increase of +1.07%, outperforming the S&P 500's gain of 0.53% [1] - Over the past month, Immersion's shares declined by 3.55%, underperforming the Computer and Technology sector's loss of 0.75% and the S&P 500's gain of 1.24% [1] Earnings and Analyst Estimates - The investment community is closely watching Immersion's upcoming earnings report, with recent changes to analyst estimates being significant for investors [2] - Positive estimate revisions are interpreted as favorable for the company's business outlook [2] Valuation Metrics - Immersion holds a Forward P/E ratio of 5.36, which is a discount compared to the industry's average Forward P/E of 13.09 [4] - The Zacks Consensus EPS estimate for Immersion has remained unchanged over the last 30 days, and the company currently has a Zacks Rank of 3 (Hold) [4] Industry Context - The Computer - Peripheral Equipment industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 72, placing it in the top 29% of over 250 industries [5] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5]

Core Viewpoint - Immersion Corporation's (IMMR) stock has declined by 28.3% over the past six months, raising questions about whether this represents a buying opportunity or indicates deeper issues within the company [1] Group 1: Stock Performance and Valuation - The decline in IMMR shares is attributed to profit booking by investors after the stock reached a 52-week high of $13.94 on July 29, 2024, leading to increased selling pressure [1] - Immersion's stock is currently trading at a forward 12-month price-to-sales multiple of 6.03x, significantly higher than the industry average of 0.67x, raising concerns about its near-term growth potential [2] Group 2: Financial Performance - In Q3 2024, Immersion's revenues surged to $616.2 million from $7 million in the same quarter last year, with a non-GAAP EPS of $1.22, a substantial increase from 26 cents in the previous year [4] Group 3: Industry Position and Growth Potential - Immersion is a leader in the haptic technology sector, which is experiencing growing demand across various industries, including gaming, automotive, and virtual reality (VR) [5] - The company has integrated its technology into over three billion devices worldwide and has more than 150 licensed customers, solidifying its market presence [6] - Partnerships with major companies like Sony for the PlayStation 5's DualSense controller, as well as licensing agreements with Samsung and Meta Platforms, enhance Immersion's market reach and validate its technology [7][8] Group 4: Conclusion and Investment Outlook - The recent stock price decline does not indicate weak fundamentals for Immersion, as its leadership in the haptic technology space suggests a solid long-term growth trajectory [9] - Despite the premium valuation, the strong fundamentals support holding the stock for long-term investors [10]

Company Overview - Immersion Corporation (NASDAQ: IMMR) is historically a patent licensing company specializing in haptic technology [1] - The company generates revenue through licensing agreements with electronics manufacturers, which has historically been lumpy and inconsistent [1] Business Performance - Immersion's patent licensing business has performed strongly [1] Analyst Disclosure - The analyst has a beneficial long position in shares of ACTG through stock ownership, options, or other derivatives [1] - The article expresses the analyst's own opinions and is not receiving compensation other than from Seeking Alpha [1] - The analyst has no business relationship with any company mentioned in the article [1]