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Silicon Labs Q3 revenue beats estimates; suspends guidance

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$250.89 mln

$242.10 mln (5 Analysts)

Q3 Net Income

$8.85 mln

Q3 Gross Profit

$152.58 mln

Q3 Operating Expenses

$144.63 mln

Q3 Operating Income

$7.95 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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