Why Synaptics Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of touchscreen technology specialist Synaptics climbed 15% today after its quarterly results and guidance topped Wall Street expectations.
So what: Synaptics' second-quarter results -- adjusted EPS of $0.53 on revenue of $143 million versus the consensus of $0.45 and $137.6 million, respectively -- and current-quarter outlook were so strong that analysts have no choice but to raise their price targets on the stock. Strong demand for the company's mobile phone touchscreen applications is helping offset continued weakness in its PC products segment, reinforcing recent optimism over its growth prospects going forward.
Now what: Management now sees third-quarter adjusted EPS of $0.50-$0.58 on revenue of $140 million-$148 million, well ahead of Wall Street's view of $0.40 and $133.5 million. "Based on our strong product line-up, Synaptics is executing very well across our key markets, and we believe our ongoing technology road map positions us for continued success across future product generations," CEO Rick Bergman said. Of course, with the stock now up about 60% over the past three months alone, I'd wait for some of the excitement to fade before betting on that bull talk.
Interested in more info on Synaptics? Add it to your watchlist.
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The article Why Synaptics Shares Soared originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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