Why Synaptics Shares Surged
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 Synaptics climbed 11% today after the touch-screen technologist raised its outlook for the current quarter.
So what: The stock has slumped over the past month on concerns over slowing growth, but today's upbeat guidance reignites optimism on Wall Street over the mobile trends working in Synaptics' favor. The company also expects gross margins to be higher than previously expected, suggesting that its competitive position is strengthening as well.
Now what: Management now sees fourth-quarter revenue of $227 million to $230 million, up from a prior view of $190 million to $205 million and also well ahead of Wall Street's estimate of $198.6 million. "The Company's updated outlook is being driven by higher than expected revenue from mobile products, reflecting strong demand from a broad range of leading-edge designs across multiple mobile customers," Synapics wrote in a statement. With the stock still well off its 52-week highs and currently trading at a forward P/E of 12, there might even be some room left to benefit from that operating momentum.
Interested in more info on Synaptics? Add it to your watchlist.
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.
The article Why Synaptics Shares Surged 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.