Silicon Motion Q3 revenue more than doubles, beats estimates
Overview
NAND flash controller maker's Q3 revenue surges 131% yr/yr, beating analyst expectations
Adjusted EPS for Q3 jumps to $4.35
Company raised annual dividend by 15% to $2.30 per ADS, first installment to be paid in November
Outlook
Company expects Q4 2026 revenue between $588 mln and $616 mln
Company sees Q4 2026 non-GAAP gross margin between 54.0% and 55.0%
Company forecasts Q4 2026 non-GAAP operating margin of 36.0% to 37.0%
Result Drivers
PRODUCT MIX SHIFT - Q3 growth was driven by Ferri product family and SSD controllers, including new MonTitan enterprise and AI controllers beginning to scale
MARKET DEMAND SHIFT - Rising enterprise and AI storage demand is creating opportunities in segments where NAND makers are reducing supply
SUPPLY PRIORITIZATION - Enterprise and Ferri customers prioritized supply assurance over price amid rising memory costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $560.2 mln | $529.10 mln (9 Analysts) |
Q3 Adjusted Earnings per diluted ADS | $4.35 | ||
Q3 Adjusted Gross Profit | $300.7 mln | ||
Q3 Adjusted Operating Expenses | $120.70 mln | ||
Q3 Adjusted Operating Income | $180 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Silicon Motion Technology Corporation is $350.00, about 71.4% above its October 27 closing price of $204.17
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 35 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)