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SiTime Q3 revenue beats estimates on AI infrastructure demand

By Reuters News


Overview

  • Precision timing chipmaker's Q3 revenue rose sharply yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 was $4.01, beating analyst expectations

  • Company announced a three-for-one stock split


Outlook

  • Company did not provide specific financial guidance in its press release


Result Drivers

  • AI INFRASTRUCTURE DEMAND - Co said ongoing AI infrastructure buildout drove strong demand for its timing products, with core CED revenue up 202% yr/yr

  • TPD ACQUISITION - Co attributed improved scale and financial performance to the integration of TPD, which it said progressed well in Q3

  • BROAD-BASED GROWTH - Co said revenue growth was broad-based and not limited to a single market


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$298.67 mln

$292.64 mln (11 Analysts)

Q3 Net Income

$4.35 mln

Q3 Gross Profit

$154.12 mln

Q3 Operating Income

$8.33 mln

Q3 Pretax Profit

$4.53 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "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 SiTime Corporation is $850.00, about 91.1% above its November 3 closing price of $444.88

  • The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 55 three months ago


Reuters Recommended Reads

  • Nov 4 - AMD forecast eases AI spending fears as data-center sales surge

  • Nov 4 - Arm beats second-quarter revenue estimates on AI and data-center demand

  • Nov 4 - AI boom draws chip supply from other end-markets, Siltronic CEO says


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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