Synaptics Earnings Preview

Motley Fool Staff
Updated

Watch Synaptics' (NAS: SYNA) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, July 28. Synaptics target the personal computer, or PC, market and the market for digital lifestyle products, including mobile smartphones and feature phones, portable digital music and video players, and other select electronic device markets.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Synaptics with nine of 17 analysts rating it hold. Analysts don't like Synaptics as much as competitor Mercury Computer Systems overall. Eight out of 10 analysts rate Mercury Computer Systems a buy, compared to five of 17 for Synaptics. Analysts' rating of Synaptics has stayed constant from three months prior.

  • Revenue Forecasts: On average, analysts predict $142.6 million in revenue this quarter. That would represent a decline of 2.2% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.34 per share. Estimates range from $0.27 to $0.38.

What our community says:
CAPS All-Stars are solidly behind the stock with 96.8% granting it an "outperform" rating. The community at large concurs with the All-Stars with 96.5% awarding it a rating of "outperform." Fools are gung-ho about Synaptics and haven't been shy with their opinions lately, logging 282 posts in the past 30 days. Synaptics has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Synaptics' profit has risen year over year by an average of 49.8%.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

40.5%

40.8%

41%

40.6%

Operating Margin

10.1%

12.2%

14.6%

14.6%

Net Margin

9.5%

11.1%

12.2%

13.3%

For all our Synaptics-specific analysis, including earnings and beyond, add Synaptics to My Watchlist.

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At the time thisarticle was published

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