Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of mixed-signal microchip designer Silicon Laboratories (Nasdaq: SLAB ) sent a very clear signal today, jumping as much as 13.8% overnight on tremendous volume.
So what: The longtime, three-time Stock Advisor recommendation just reported third-quarter results far stronger than Wall Street analysts had dared to dream, followed up with solid guidance for the next quarter. Silicon Labs soars on a day when chief rivals Texas Instruments (NYSE: TXN ) , Broadcom (Nasdaq: BRCM ) , and Analog Devices (NYSE: ADI ) are just treading water, some of them on the heels of their own quarterly reports.
Now what: Putting the rose-tinted glasses aside for a second, we see that Silicon Labs' shares are now back almost exactly where they were three months ago when timid guidance eviscerated the stock. The final report shows sales at the top end of, but still within, the supposedly disappointing guidance range. With the rosy lenses back on, we note that management expects to overcome macroeconomic headwinds with a rash of new products, which are helping the company take market share in several key segments.
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