Silicon Laboratories Beats Estimates Yet Again

Silicon Laboratories (NAS: SLAB) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Silicon Laboratories beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue increased and earnings per share improved slightly.

Gross margins contracted, operating margins improved, and net margins dropped.

Revenue details
Silicon Laboratories booked revenue of $127 million. The 13 analysts polled by S&P Capital IQ anticipated a top line of $120 million. Sales were 13% higher than the prior-year quarter's $112 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.49. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.43 per share on the same basis. GAAP EPS of $0.29 for Q4 were 1.1% higher than the prior-year quarter's $0.29 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 60.9%, 260 basis points worse than the prior-year quarter. Operating margin was 12.0%, 220 basis points better than the prior-year quarter. Net margin was 10.1%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $118 million. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $521 million. The average EPS estimate is $2.03.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 357 members out of 384 rating the stock outperform, and 27 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Silicon Laboratories a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Laboratories is outperform.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Silicon Laboratories. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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