Silicon Labs Q3 revenue beats estimates; suspends guidance

Overview

• Wireless IoT chipmaker's Q3 revenue rose 22% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 rose 228% yr/yr

• Company suspended guidance due to pending Texas Instruments acquisition

Outlook

• Company has suspended providing forward-looking guidance due to pending Texas Instruments acquisition

• Company says backlog and design-win ramps position it for continued revenue growth

• Company notes healthy demand environment and low distributor and customer inventories

Result Drivers

• BROAD-BASED GROWTH - Co said Q3 revenue was driven by growth across many end applications and a record quarter for medical revenue, per CEO Matt Johnson

• MEDICAL SEGMENT - Medical revenue increased 48% sequentially and over 300% yr/yr, reaching a new quarterly record

• INVENTORY LEVELS - Co said distributor and end customer inventories fell to multi-year and near record lows, indicating healthy demand

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "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 Laboratories Inc. is $231.00, about 4.1% above its November 9 closing price of $221.80

• The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 58 three months ago

Reuters Recommended Reads

• Nov 10 - Chipmakers warn AI demand is creating bottlenecks in automotive supply chain

• Nov 10 - Chipmaker Infineon forecasts strong 2027 growth on data-centre demand

• Nov 10 - Germany's Infineon Q4 revenue rises sequentially

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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.)