Synaptics beats Q4 revenue and EPS expectations, sets $150 mln share repurchase program
Overview
Synaptics fiscal 2025 revenue up 12% yr/yr, driven by Core IoT sales
Q4 revenue and adjusted EPS beat analyst expectations, per LSEG data
Co announces new $150 mln share repurchase program
Outlook
Synaptics expects Q1 fiscal 2026 revenue of $290 mln ± $10 mln
Company anticipates 13% year-over-year revenue growth in Q1 fiscal 2026
Synaptics projects Q1 fiscal 2026 non-GAAP EPS of $1.05 ± $0.15
Company notes improved order activity and inventory levels
Result Drivers
CORE IOT GROWTH - Core IoT product sales surged by 53% yr/yr, driving fiscal 2025 revenue growth, per CEO Rahul Patel
GROSS MARGIN DECLINE - GAAP gross margin for fiscal 2025 decreased to 44.7% from 45.8% in the prior year
FINANCIAL POSITION - Co reduced gross debt by 14% or $134 mln, supported by strong cash flows, per CFO Ken Rizvi
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $282.80 mln | $279.60 mln (9 Analysts) |
Q4 Adjusted EPS | Beat | $1.01 | $1 (9 Analysts) |
Q4 EPS | -$0.12 | ||
Q4 Adjusted Net Income | Beat | $39.50 mln | $39.10 mln (9 Analysts) |
Q4 Adjusted Gross Margin | 53.5% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Synaptics Inc is $80.00, about 24.9% above its August 6 closing price of $60.10
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
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