The 10-second takeaway
For the quarter ended June 30 (Q2), Silicon Laboratories beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margins grew, operating margins contracted, and net margins improved.
Silicon Laboratories recorded revenue of $135.7 million. The 14 analysts polled by S&P Capital IQ predicted a top line of $132.1 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $126.2 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 16 earnings estimates compiled by S&P Capital IQ forecast $0.47 per share. GAAP EPS of $0.47 for Q2 were 62% higher than the prior-year quarter's $0.29 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 61.0%, 60 basis points better than the prior-year quarter. Operating margin was 12.1%, 60 basis points worse than the prior-year quarter. Net margin was 15.1%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $139.1 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $537.4 million. The average EPS estimate is $2.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 355 members out of 382 rating the stock outperform, and 27 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Silicon Laboratories a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Laboratories is outperform, with an average price target of $42.18.
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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. Motley Fool newsletter services have recommended buying shares of Silicon Laboratories. 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.