Silicon Laboratories
The stock suffered after earnings because management told us that those margins are coming back to the target range again. Fourth-quarter earnings of $0.46 per share and $112 million in sales both beat analyst expectations, and revenue will be strong again in the next quarter.
However, Silicon Labs enjoyed some price breaks from Taiwan Semiconductor Manufacturing
That's why the stock fell more than 7% yesterday. But margin trajectories aside, Silicon Labs claims to have some growth catalysts coming into play; its video products should triple in sales this year. Its new TV tuner chips sell at below-average margins, but have been picked up by several TV manufacturers, paving the way toward strong sales.
That's impressive in the face of established competition from Texas Instruments
Will video-chip sales in 2011 finally provide the catalyst our Stock Advisor team has been expecting for the last six years? Only time will tell, but the early adoption of these tuners is a good sign.
Add Silicon Labs to your watchlist to stay on top of the situation.