This article originally appeared as part of ongoing coverage in our premium Motley Fool Rule Breakers service ... we hope you enjoy this complimentary peek!

What's happening?
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.

Alex Planes has no position in any stocks mentioned. 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.