Synaptics shares surges as fiscal Q2 results top expectations, outlook much higher on PC, IoT strength
Consumer electronics and IoT chip powerhouse Synaptics this afternoon reported fiscal Q2 revenue and profit that topped analysts' expectations, and forecast revenue this quarter well above consensus.
The report sent the shares up 7% in late trading.
Said CEO Michael Hurlston, the quarter was "outstanding," with Synaptics delivering "the highest non-GAAP gross margins, net income and EPS in the company's 35-year history
Added Hurlston, "Overall, our diversification strategy with a tilt toward IoT and PC is paying dividends with both businesses delivering record revenue in the quarter. IoT now represents our largest business, giving us a stable foundation from which we can more aggressively drive top line growth."
Revenue in the three months ended in December rose to $357.6 million, yielding EPS of $2.30.
Analysts had been modeling $357 million in revenue and $2.13 in EPS.
CFO Dean Butler said that the company is currently seeing "continued strength in our PC business," and that the Internet of Things business will "outperform typical seasonality aided by a robust pipeline of design wins."
Added Butler, "We anticipate gross margins to remain strong and our revenue mix to continue shifting toward IoT."
Butler said that "while supply-chain constraints likely limit further upsides in the near-term, we believe we are well positioned to deliver further improvements in gross margins and profitability over the long term."
For the current quarter, the company sees revenue in a range of $310 million to $340 million. That compares to consensus for $306 million.