Sticking With SYNA
I recently recommended shares of Synaptics (SYNA) as a play on the growing number of touch-enabled devices and better-than-expected PC sales reported by Microsoft (MSFT). While many will get caught up with the earnings miss that Synaptics reported last week -- and that miss has SYNA shares down 7.6% from last Thursday -- let's put some perspective around that earnings miss. It was a penny a share, vs. Street consensus of $2.47 in earnings per share in 2012. That equates to a very small number indeed. Coupled with the oversold nature of the shares, a deeper dive into the report paints a picture of modest downside and meaningful upside in the coming months.
Last week Synaptics reported earnings of $0.51 per share, $0.01 short of the Capital IQ consensus of $0.52, on in-line revenue of $132 million. As expected, the company experienced a rebound in PC-related demand; that segment grew 6% year over year. On the downside, Synaptic's mobile touchscreen applications fell year on year, but recent customer traction for new products bodes well for a rebound in this business. More specifically, Synaptics had several designs wins at key mobile OEMs and achieved important milestones with the initial volume shipments of its first ClearPad 3250 smartphone product and its ClearPad 7300 touchscreen prodcut....229 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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