Shares of Silicon Laboratories (NASDAQ:SLAB) rose 11% on Wednesday after the fabless semiconductor specialist announced strong second-quarter 2017 results.
Quarterly revenue rose 8.7% year over year to $190.1 million, and translated to 6.5% growth in GAAP net income to $16.6 million, or $0.38 per diluted share. On an adjusted basis, which excludes items like stock-based compensation and acquisition expenses, Silicon Labs generated earnings of $0.79 per share. By comparison, three months ago, Silicon Labs told investors to expect second-quarter revenue of $184 million to $189 million, GAAP net income per share of $0.27 to $0.33, and adjusted net income per share between $0.68 and $0.74.
Silicon Labs CEO Tyson Tuttle noted that product revenue climbed 12% year over year during the quarter, while Internet of Things revenue exceeded 50% of the company's total.
"Our strategy is coming together as we focus on core strategic growth drivers and capture share in target markets," Tuttle added.
Looking forward, Silicon Labs anticipates third-quarter revenue in the range of $193 million to $199 million, GAAP earnings per share of between $0.35 and $0.41, and adjusted earnings per share between $0.78 and $0.84. By comparison -- and though we don't usually pay close attention to Wall Street's demands -- consensus estimates predicted third-quarter revenue and earnings would be near the low ends of Silicon Labs' respective guidance ranges.
In the end, this was a straightforward quarterly beat from Silicon Labs, and it's no surprise to see the stock up big today.