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Shares of Silicon Laboratories (NASDAQ:SLAB) are trading 13% higher today following the company's pre-market release of strong third-quarter earnings and fourth-quarter guidance.
Why it's happening
Silicon Labs reported $158.1 million in revenue and adjusted earnings of $0.52 per share. Both results easily beat Wall Street's forecast for $155 million in revenue and $0.48 in adjusted EPS. On a generally accepted accounting principles basis, Silicon Labs earned $0.13 per share. CEO Tyson Tuttle noted that this was a revenue record for Silicon Labs, which also set an all-time high in broad-based segment revenue, which covers most of the company's range of chips and microcontrollers.
The company now expects to earn between $155 million and $161 million in the fourth quarter, which would result in anywhere from $0.43 to $0.49 in EPS. Analysts had expected Silicon Labs to come up with $151.7 million in revenue and $0.45 in EPS for the fourth quarter, so both top- and bottom-line ranges surpass these expectations.