Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of chip maker Silicon Motion Technology
So what: Revenue rose 38% from last year to $69.7 million, and earnings per share of $0.42 were a penny above expectations. The company also said that revenue would be up 5% to 8% in the third quarter, which is above current estimates.
Now what: The market seems to be focusing on the company's slightly better outlook for the third quarter today. The earnings report was good, but considering the way Silicon Motion has been beating estimates over the past year, it wasn't all that surprising. But even after today's jump, shares are trading at just 8.5 times forward earnings, a great price considering the company's growth momentum. I think that can keep pushing shares higher.
Interested in more info on Silicon Motion Technology? Add it to your watchlist by clicking here.
