Why Silicon Motion Shares Jumped
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 Silicon Motion have jumped today by upwards of 14% after the company reported earnings.
So what: Revenue in the second quarter totaled $58.3 million, which resulted in non-GAAP earnings per share of $0.27. Both figures were roughly in line with the Street's models, which were looking for $58.5 million in sales and a $0.26 per share adjusted profit.
Now what: CEO Wallace Kou may have impressed investors by saying the company saw strong sales in low-cost mobile devices in China, a booming market. Silicon Motion's SSD and embedded products are also growing and topped expectations. Third-quarter revenue is expected to either decrease by 2.5% or increase by 2.5% sequentially. Excluding LTE transceiver sales, full-year revenue should be down 5% to 10% in 2013.
Interested in more info on Silicon Motion? Add it to your watchlist by clicking here.
The article Why Silicon Motion Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.