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Well, it looks like AmTech’s Jeff Schreiner bailed on his sell call on Sigma Designs (NASDAQ:SIGM) at the right time.

Well, you could argue that his Sell call was a mistake that never should have happened in the first place, but let’s not quibble. Yesterday, Schreiner backed away from a long-held sell rating on the stock, and advised that the company was likely to report a blowout quarter for the fiscal third quarter which ended August 4.

And this afternoon, that is exactly what happened. Sigma reported revenue for the quarter of $42.5 million, with EPS of 32 cents GAAP, 48 cents pro forma. The Street was looking for $35.12 million and 35 cents pro forma. The company also said it sees 20%-plus growth in the fiscal fourth quarter. That implies revenue for the quarter of about $52 million, which is far above the Street consensus of $42.3 million. The company also said that its “gross margin target remains within 200 basis points of 50% with some variance expected due to the timing of its cost reduction efforts and pressure from its customers to lower its selling prices as their order levels grow.

In after hours trading, Sigma shares are up $5.52, at 14%, at $44.15; the stock gained $1.38 in Wednesday's regular session.

Source: Sigma Designs Soars on Blowout Quarter