What happened 

Shares of Silicon Labs (SLAB 5.92%), an Internet of Things components maker, were skyrocketing Wednesday morning after the company easily beat Wall Street's consensus estimates for both earnings and revenue in the fourth quarter. 

Investors were pleased with the company's financial results, sending the Internet of Things stock up by 13.6% as of 10:50 a.m. ET. 

So what

Silicon Labs reported non-GAAP (adjusted) earnings of $1.31 per share in the fourth quarter, which was an increase of 70% from the year-ago quarter and far ahead of analysts' average estimate of $0.98 per share.  

The company's revenue growth in the quarter was also impressive. Sales were up 23% year over year to $257.3 million, which beat Wall Street's consensus estimate of $250.3 million.  

"The strength of our opportunity funnel and design win pipeline gives us confidence in our ability to continue expanding our leadership position in IoT while navigating the current economic uncertainty," Silicon Labs CEO Matt Johnson said in a press release.

Now what 

In addition to its strong quarterly performance, the company's management also issued first-quarter guidance that was ahead of most analysts' expectations. 

Silicon Labs' leadership forecast that non-GAAP earnings for the first quarter will be in the range of $1.07 per share to $1.17 per share -- far above analysts' consensus estimate of $0.77 per share. 

Given the company's strong fourth-quarter results and its optimistic first-quarter outlook, it's no surprise that investors were bidding the IoT stock up Wednesday morning.