The 10-second takeaway
For the quarter ended June 29 (Q2), Silicon Laboratories met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted. GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins grew, net margins dropped.
Silicon Laboratories reported revenue of $141.5 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $143.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.50. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. Non-GAAP EPS of $0.50 for Q2 were 2.0% lower than the prior-year quarter's $0.51 per share. GAAP EPS of $0.29 for Q2 were 38% lower than the prior-year quarter's $0.47 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 62.7%, 170 basis points better than the prior-year quarter. Operating margin was 13.4%, 130 basis points better than the prior-year quarter. Net margin was 8.9%, 620 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $152.2 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $596.9 million. The average EPS estimate is $2.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 349 members out of 377 rating the stock outperform, and 28 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Silicon Laboratories a green thumbs-up, and two 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 $48.13.
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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. The Motley Fool recommends 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.