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What: Shares of Synaptics (NAS: SYNA) are touching higher ground today, up by as much as nearly 22% after the company reported first-quarter earnings besting analysts' expectations.
So what: Revenue for the quarter was $133.4 million, which resulted in non-GAAP earnings per share of $0.57. Both figures topped the Street's estimates, which were $132.6 in sales and $0.47 per share in profit.
Now what: The company also authorized a $100 million buyback program and has almost completed its transition into making only chips for touchscreen devices in the mobile market, which promises higher margins. Other players in the touchscreen microcontroller market are also seeing some upside today, including Atmel (NAS: ATML) and Cypress Semiconductor (NAS: CY) . A handful of analysts have also followed up with upgrades this morning, including Craig-Hallum and Sterne Agee. Synaptics is profiting from technology's major shift toward intuitive interaction like touch, which is the exact reason I happen to own Atmel and Cypress.
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At the time thisarticle was published Fool contributorEvan Niuowns shares of Atmel and Cypress Semiconductor, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Cypress Semiconductor and writing covered calls in Synaptics. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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