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Sunday, July 27, 2014 11:08:58 PM
Silicon Labs Drops 14%: Look Past Speed Bump to IoT, Says Pac Crest
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Shares of chip maker Silicon Labs (SLAB) are down $6.75, or 14.4%, at $40.05, after the company this morning reported Q2 revenue and earnings per share that topped analysts’ expectations, but also forecast results this quarter below consensus.
Revenue in the three months ended in June rose almost 10%, year over year, to $154.9 million, yielding EPS of 58 cents.
Analysts had been modeling $149 million and 46 cents.
CEO Tyson Tuttle called the results “strong,” and said the company was benefitting from a “multi-year investment strategy for the IoT and the Internet infrastructure and realizing meaningful revenue growth,” referring to the Internet of Things.
For the current quarter, the company sees revenue in a range of $153 million to $157 million, and EPS in a range of 45 cents to 51 cents. That compares to the average estimate on the Street of $156.8 million and 54 cents.
One party who steps up to the defend the shares today is John Vinh of Pacific Crest Securities, who has an Outperform rating on the shares, this afternoon cut his price target to $50 from $55, while writing that “We would be buyers on the pullback.”
Vinh argues while outlook now is “cautious” in some repsects, there’s plenty to look forward to with respect to IoT:
Silicon Labs previously noted that its IoT exposure was 15% of revenue in 2013, and expected to grow tthat o 20% in 2014. The company now believes that 20% target appears conservative, given the continued strength it sees in key IoT markets including wearables, home connectivity, smart metering and industrial. We believe Silicon Labs remains well positioned to monetize IoT and exceed expectations based on its competitive assets in MCUs, sensors and wireless connectivity. Silicon Labs Remains Cautious About Q4 The company stated cautiousness regarding seasonal weakness in Q4, mainly due to typical seasonally weak demand for broadcast and timing products in that period. However, Silicon Labs expects strong traction in MCU, IoT and automotive business to continue into Q4 and partially offset seasonal weakness.
Recent SLAB News
- Silicon Labs' Works With 2024 Goes Global: Registration Opens for Annual IoT Developer Conference with New In-Person Events • PR Newswire (US) • 07/16/2024 04:01:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/15/2024 08:15:30 PM
- Silicon Labs Announces Second Quarter 2024 Earnings Webcast • PR Newswire (US) • 07/15/2024 06:54:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 03:19:36 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/03/2024 06:23:37 PM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/24/2024 08:07:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 03:31:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 03:27:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 03:23:34 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 03:17:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 03:03:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 03:02:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 03:28:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 03:26:45 PM
- Silicon Labs Reports First Quarter 2024 Results • PR Newswire (US) • 04/24/2024 11:05:00 AM
- Silicon Labs Appoints Bob Conrad as Senior Vice President of Worldwide Operations • PR Newswire (US) • 04/24/2024 11:00:00 AM
- Silicon Labs Streamlines Energy Harvesting Product Development for Battery-Free IoT • PR Newswire (US) • 04/22/2024 04:01:00 AM
- Silicon Labs welcomes Radhika Chennakeshavula as CIO • PR Newswire (US) • 04/19/2024 12:49:00 PM
- Silicon Labs Announces First Quarter 2024 Earnings Webcast • PR Newswire (US) • 04/11/2024 08:41:00 PM
- Silicon Labs xG26 Sets New Standard in Multiprotocol Wireless Device Performance • PR Newswire (US) • 04/09/2024 04:01:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/07/2024 07:08:49 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 03/06/2024 09:10:58 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 03/06/2024 09:06:07 PM
- Silicon Labs' 2023 Annual Report to Shareholders and 2024 Proxy Statement Available Online • PR Newswire (US) • 03/06/2024 09:05:00 PM
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