Synaptics Has Samsung to Thank for Today's Pop
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What: Shares of Synaptics have popped by as much as 18% today after the company posted solid quarterly earnings and provided upbeat guidance thanks to design wins at Samsung.
So what: Revenue in the quarter came in at $163.3 million, crushing Wall Street's forecast of just $145.8 million. The bottom-line forecast of $0.57 per share was similarly decimated, with Synaptics bringing home $0.79 per share in adjusted profits. The quarter marked record revenue for the touchscreen controller specialist.
Now what: CEO Rick Bergman said the company continues to increase penetration in the mobile market and diversify its customer base. On the subsequent conference call, Bergman noted that its ClearPad technology is powering Samsung's new flagship Galaxy S4 and Note 8, both of which should translate into healthy unit volumes. Synaptics' chips power the "Air View" feature that Samsung is marketing, which detects when fingers hover over the display. Meanwhile, Synaptics continues to move its business away from the stagnant PC market.
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The article Synaptics Has Samsung to Thank for Today's Pop originally appeared on Fool.com.Fool contributor Evan Niu, CFA has no position in any stocks mentioned, and neither does The Motley Fool. 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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