NEW YORK (TheStreet) -- Synaptics (SYNA - Get Report) stock is plunging by 11.53% to $71.75 on heavy trading volume this afternoon, as a Chinese buyer will reportedly wait to revalue its takeover offer to reflect the company's most recent quarterly earnings.
Synaptics will miss the end-of-April target date for announcing its sale to a Chinese investment group, sources told Bloomberg. Additionally, the potential takeover offer has declined to roughly $100-per-share or lower, from roughly $110-per-share.
A deal remains at least two weeks away from an agreement, and might still fall apart, Bloomberg adds. The Chinese group wanted to wait to see the market's reaction to the company's earnings before reevaluating the transaction.
After yesterday's market close, the California-based chipmaker reported 2016 third quarter adjusted earnings of $1.21 per share, missing analysts' estimates for $1.51 per share.
Revenue declined by 16% year-over-year to $402.5 million, missing analysts' estimates for $450.4 million.
For the current quarter, Synaptics expects that revenue will range between $300 million and $340 million. Wall Street is looking for revenue of $478.6 million.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Synaptics' strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: SYNA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.