During its fiscal fourth quarter, the chipmaker reported earnings of 49 cents a share, beating the Capital IQ Consensus Estimate of 43 cents a share by 6 cents. Revenue for the quarter fell 4.1% year over year to $146.2 million, but Silicon Labs still beat the consensus estimate of $142.9 million.
Silicon Labs said broad-based revenue was $72.4 million for the quarter, reflecting a record quarter for microcontrollers and wireless. The revenue was offset by lower-than-expected revenue in the weak telecom infrastructure market.
In addition to earnings report, Silicon Labs issued stronger-than-expected guidance for the first quarter of 2014. Silicon Labs expects earnings between 40 and 44 cents a share. Capital IQ Consensus Estimate puts earnings at 41 cents a share for the quarter. The company's revenue guidance is between $142 million and $146 million, compared to analysts' estimate of $141.3 million.
TheStreet Ratings team rates SILICON LABORATORIES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SILICON LABORATORIES INC (SLAB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow."