Silicon Laboratories Earnings: Here’s Why the Stock is Falling Now

Silicon Laboratories, Inc. (NASDAQ:SLAB) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.47%.

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Silicon Laboratories, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.98% to $0.46 in the quarter versus EPS of $0.43 in the year-earlier quarter.

Revenue: Rose 15.67% to $145.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Silicon Laboratories, Inc. reported adjusted EPS income of $0.46 per share. By that measure, the company missed the mean analyst estimate of $0.55. It beat the average revenue estimate of $143.82 million.

Quoting Management: “Our strategic products are all growing,” said Tyson Tuttle, president and CEO of Silicon Labs. “We expect our historical headwinds will be a much smaller percent of our revenue as we exit the second quarter. We’re also demonstrating good operating expense control and have a very active R&D pipeline – the right ingredients for another growth year.”

Key Stats (on next page)…

Revenue decreased 4.63% from $152.46 million in the previous quarter. EPS decreased 24.59% from $0.61 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.56 to a profit $0.55. For the current year, the average estimate has moved up from a profit of $2.33 to a profit of $2.35 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)