Synaptics stock drops following CEO’s departure for role a Lumentum

Published 03/02/2025, 22:36
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Investing.com -- Shares of Synaptics (NASDAQ:SYNA) Incorporated (Nasdaq: SYNA) fell 5% after the company announced the immediate resignation of its CEO Michael Hurlston, who has accepted a new role as CEO at Lumentum Holdings Inc (NASDAQ:LITE). The unexpected leadership change has prompted investors to reassess the company’s future direction.

Synaptics disclosed that Chief Financial Officer Ken Rizvi will serve as Interim CEO and Nelson Chan, Chairman of the Board, will take on the role of Executive Chairman during the transition period. The company has begun the process of searching for a new CEO and is considering both internal and external candidates.

The departure of Hurlston, who has been credited with transforming Synaptics into a key player in AI at the Edge, has raised concerns among shareholders about the continuity of the company’s strategic goals and growth trajectory. Hurlston’s leadership was acknowledged for driving innovation and overseeing the development of a diversified portfolio of solutions.

In conjunction with the leadership announcement, Synaptics released preliminary financial results for the second quarter of fiscal 2025, projecting $267 million in revenue, which is slightly above the consensus estimate of $265 million. The company expects its GAAP and non-GAAP gross margin to align with the mid-point of previous guidance, with operating expenses slightly above the mid-point and EPS above the mid-point. This guidance suggests a stable financial performance, despite the executive shake-up.

The full financial details will be provided when Synaptics reports its second quarter fiscal 2025 results on Thursday, February 6, 2025. A conference call for analysts and investors is scheduled for that day, where management may discuss the company’s outlook in more detail.

Lumentum’s announcement of Hurlston’s appointment highlighted his extensive industry experience and successful tenure at Synaptics, which investors will be watching closely as he transitions to his new role. The market’s reaction to the CEO’s departure reflects the significance of executive leadership in shaping investor confidence and a company’s strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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