The 10-second takeaway
For the quarter ended March 31 (Q3), Synaptics met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Gross margins expanded, operating margins improved, net margins dropped.
Synaptics tallied revenue of $131.7 million. The 13 analysts polled by S&P Capital IQ foresaw sales of $132.1 million on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $142.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.51. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.33 for Q3 were 13% lower than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.2%, 670 basis points better than the prior-year quarter. Operating margin was 11.2%, 110 basis points better than the prior-year quarter. Net margin was 8.7%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $149.2 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $559.8 million. The average EPS estimate is $2.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 772 members out of 806 rating the stock outperform, and 34 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 175 give Synaptics a green thumbs-up, and seven 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 $38.25.
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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 may not 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.