Shares of Silicon Labs (SLAB 3.52%) fell 15.2% in January 2020, according to data from S&P Global Market Intelligence. The designer of embedded semiconductors posted disappointing fourth-quarter results near the end of the month, driving share prices 13% lower in a single day.
Adjusted fourth-quarter earnings fell 8% year over year, landing at $0.84 per share. Revenue rose by 2% to $219 million. Your average analyst had been looking for earnings near $0.89 per share on sales of roughly $222 million. Silicon Labs saw slow orders from the automotive and industrial Internet of Things markets along with exaggerated seasonal swings in smart-home devices.
Management also set first-quarter guidance targets at or below Wall Street's consensus levels, adding weight to the downward market pressure. Silicon Labs' investors seem to expect a return to full health soon enough, though -- the stock is trading at a lofty 248 times trailing earnings and 31 times free cash flow.