The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Synaptics met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and GAAP earnings per share dropped significantly.
Margins expanded across the board.
Synaptics reported revenue of $145.5 million. The 15 analysts polled by S&P Capital IQ expected to see sales of $145.4 million. Sales were 8.8% lower than the prior-year quarter's $159.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.68. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share on the same basis. GAAP EPS of $0.39 for Q2 were 2.0% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.2%, 640 basis points better than the prior-year quarter. Operating margin was 14.5%, 60 basis points better than the prior-year quarter. Net margin was 11.9%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $136.6 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $564.4 million. The average EPS estimate is $2.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 777 members out of 810 rating the stock outperform, and 33 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 200 give Synaptics a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Synaptics is outperform, with an average price target of $35.10.
Over the decades, small-cap stocks, like Synaptics have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Synaptics to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.