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AUSTIN, Texas - Silicon Labs (NASDAQ: SLAB), a leader in low-power wireless innovation, has confirmed its financial guidance for the first quarter ending April 5, 2025, during its Analyst Day event today. The company projects its revenue to be within the range of $175 to $180 million. According to InvestingPro data, the company has demonstrated strong financial health with a current ratio of 6.15, indicating robust liquidity. Six analysts have recently revised their earnings expectations upward for the upcoming period.
Silicon Labs expects its GAAP gross margin to fall between 54% and 56% with GAAP operating expenses anticipated to be around $128 million to $130 million. The GAAP diluted loss per share is estimated to be between $(0.75) and $(1.05). In terms of non-GAAP figures, which exclude stock compensation, amortization of acquired intangible assets, and certain other items, the gross margin remains the same as GAAP, while operating expenses are projected to be slightly lower, between $103 million and $105 million. The non-GAAP diluted earnings (loss) per share are forecasted to be between $0.01 and $(0.19). Based on InvestingPro analysis, analysts anticipate significant sales growth of 35% for the current year, suggesting potential improvement in financial performance.
The Analyst Day, held at 237 Park Avenue in New York City, is a platform for the company to provide a detailed overview of its long-term strategy, growth initiatives, financial outlook, and to engage in a Q&A session with its leadership team. The event is accessible to institutional investors and equity analysts, with a live broadcast available through registration on Silicon Labs’ website under Investor Relations. A recording will also be posted on the company’s investor relations page.
Silicon Labs, headquartered in Austin, Texas, operates in over 16 countries and is recognized for its advanced solutions in the smart home, industrial IoT, and smart cities markets. The company’s commitment to integrating cutting-edge technology into highly integrated SoCs has made it a trusted partner in the semiconductor industry. With a market capitalization of $4.3 billion and minimal debt-to-equity ratio of 0.02, Silicon Labs maintains a strong balance sheet. For deeper insights into Silicon Labs’ financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
This press release contains forward-looking statements and reflects the company’s current expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. Factors influencing these outcomes include the competitive and cyclical nature of the semiconductor industry, macroeconomic challenges, geopolitical events, and other risks detailed in Silicon Labs’ SEC filings. The information presented in this article is based on a press release statement from Silicon Labs. With a beta of 1.15, the stock shows moderate market sensitivity, and investors can find additional ProTips and detailed valuation metrics on InvestingPro.
In other recent news, Silicon Labs has caught the attention of analysts with its recent earnings and revenue developments. Needham raised its price target for Silicon Labs to $150, maintaining a Buy rating, following the company’s fourth-quarter results that aligned with expectations and guidance for the first quarter of 2025 that surpassed consensus estimates. The firm highlighted Silicon Labs’ growth in areas like Continuous Glucose Monitors and Electronic Shelf Labels, noting that the CGM segment could represent 10% of the company’s revenue in the next 12-18 months.
Benchmark analyst Cody Acree also upgraded Silicon Labs from Hold to Buy, setting a higher price target of $160, citing the company’s resilience amid industry challenges and a favorable industry up-cycle expected to last until 2026. Acree emphasized Silicon Labs’ strong fundamentals and anticipated earnings growth, which could lead to upward revisions in future estimates. The analyst pointed out that, despite the high forward Price-to-Earnings valuation, the company’s growth trajectory justifies the premium.
Additionally, Silicon Labs is focusing on opportunities in smart metering, particularly in India and Japan, with potential significant market opportunities. Needham also noted improvements in customer inventory levels and lean distribution channels, which could support the company’s growth. Both Benchmark and Needham’s analyses indicate confidence in Silicon Labs’ future performance amidst an evolving semiconductor industry landscape.
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