Silicon Laboratories (SLAB) stock plummeted 5.10% in pre-market trading on Tuesday following the release of its third-quarter 2025 financial results. Despite reporting better-than-expected revenue, the company's earnings fell short of analyst estimates, disappointing investors.
The semiconductor maker reported Q3 revenue of $206 million, slightly beating the consensus estimate of $205.1 million. However, Silicon Labs posted a net loss of $9.936 million, significantly missing the expected profit of $10.1 million. The company's adjusted earnings per share came in at $0.32, but this figure couldn't offset concerns about the bottom-line performance.
Adding to investor worries, Silicon Labs provided a cautious outlook for the fourth quarter. The company expects Q4 revenue between $200 million and $215 million, with adjusted EPS ranging from $0.40 to $0.70. This guidance suggests potential challenges ahead, likely contributing to the stock's sharp decline. The market's negative reaction underscores the importance of profitability and forward-looking statements in addition to top-line growth for semiconductor companies in the current economic climate.
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