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What: Shares of Synaptics (NASDAQ:SYNA) climbed 11% today after the touch-screen technologist raised its outlook for the current quarter.
So what: The stock has slumped over the past month on concerns over slowing growth, but today's upbeat guidance reignites optimism on Wall Street over the mobile trends working in Synaptics' favor. The company also expects gross margins to be higher than previously expected, suggesting that its competitive position is strengthening as well.
Now what: Management now sees fourth-quarter revenue of $227 million to $230 million, up from a prior view of $190 million to $205 million and also well ahead of Wall Street's estimate of $198.6 million. "The Company's updated outlook is being driven by higher than expected revenue from mobile products, reflecting strong demand from a broad range of leading-edge designs across multiple mobile customers," Synapics wrote in a statement. With the stock still well off its 52-week highs and currently trading at a forward P/E of 12, there might even be some room left to benefit from that operating momentum.
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