Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Stifel analysts revised their outlook on Silicon Labs (NASDAQ:SLAB), a prominent player in the Internet of Things (IoT) sector with a market capitalization of $2.92 billion. The firm’s price target on the company’s stock was lowered to $120 from the previous $145, while reaffirming a Buy rating. According to InvestingPro data, the stock is currently trading near its Fair Value.
The adjustment reflects Stifel’s analysis of Silicon Labs’ financial performance and market position. The analysts expressed confidence that the fourth quarter of 2023 marked the near-term trough for the company. Despite witnessing a year-over-year revenue decline of 25.3% in the calendar year 2024, following a 23.6% decrease the previous year, Stifel noted the absence of socket losses and continued market share gains for Silicon Labs. InvestingPro data shows the company maintains a strong financial position with a current ratio of 6.15, indicating robust liquidity.
Stifel’s analysts pointed out that Silicon Labs has maintained its status as the industry’s leading and only pure-play IoT silicon solutions supplier. They highlighted the company’s potential in various applications such as Electronic Shelf Labeling, Smart Metering, and Continuous Glucose Monitoring. Get deeper insights into Silicon Labs’ market position and growth potential with InvestingPro’s comprehensive research report, one of 1,400+ available company analyses.
Looking ahead, Stifel anticipates a significant year-over-year revenue recovery for Silicon Labs in the calendar year 2025. The firm is currently modeling a 35.8% increase, which suggests a strong rebound for the company. This optimistic forecast is based on the belief that Silicon Labs will continue to capitalize on the robust long-term growth opportunities within the IoT sector, with analysts projecting a return to profitability this year.
In other recent news, Silicon Labs has confirmed its first-quarter revenue guidance, projecting figures between $175 million and $180 million, with a midpoint estimate of $177.5 million. The company also anticipates its non-GAAP gross margin to remain between 54% and 56%, with non-GAAP operating expenses forecasted to range from $103 million to $105 million. Analysts from Benchmark and KeyBanc have maintained their positive outlook on Silicon Labs, both setting a price target of $160 and highlighting the company’s potential for sustained earnings growth. Benchmark analyst Cody Acree upgraded Silicon Labs to a Buy rating, citing the company’s solid performance amid industry challenges and a favorable industry up-cycle. Furthermore, Needham raised its price target for the company from $140 to $150, maintaining a Buy rating, and noted strong momentum in areas like Continuous Glucose Monitors and Electronic Shelf Labels. Silicon Labs also updated its long-term financial model, aiming for 20% revenue growth and an improved gross margin target of 55-57%. The company sees significant market opportunities, estimating a total available market of $4.4 billion in 2024 and a compound annual growth rate of 13% through 2028.
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