Shares of Silicon Laboratories Inc. (NASDAQ: SLAB) soared 5.02% on Monday, November 5, 2024, after the semiconductor company reported better-than-expected third-quarter results and provided an outlook for a gradual recovery in the coming quarters.
Silicon Laboratories' Q3 2024 financial performance showcased resilience amidst a challenging macroeconomic environment. The company reported revenue of $166.4 million, down 18% year-over-year but exceeding analyst estimates of $165.2 million. While the company swung to a GAAP loss of $0.88 per share, its non-GAAP loss of $0.13 per share was better than the expected loss of $0.21.
The company's CEO, Matt Johnson, attributed the solid results to design win ramps in secular growth areas, including connected health, smart metering, and commercial retail. Johnson expressed confidence in Silicon Laboratories' ability to gain market share and drive growth in these markets, underpinned by the company's innovative technologies and execution.
Silicon Laboratories' CFO, Dean Butler, acknowledged the limited visibility and choppy end-market demand, particularly in industrial sectors. However, he noted that the company is witnessing a gradual improvement in bookings and distribution point-of-sale (POS) trends, indicating a potential recovery in 2025. Butler emphasized that the company's fourth-quarter guidance does not assume significant channel restocking, reflecting a cautious approach amid the uncertain environment.
For the fourth quarter, Silicon Laboratories expects revenue between $161 million and $171 million, a flat quarter-on-quarter comparison. The company anticipates continued outperformance in its home and life products, offset by a muted industrial and commercial market.
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