Susquehanna has adjusted its price target for Silicon Labs (SLAB, Financial), boosting it to $110 from the previous $100, while maintaining a Neutral stance on the stock. This decision follows Silicon Labs' recently reported results, which met expectations, alongside a promising forecast. The company has been experiencing growth through new customer engagements and increased market share in key areas. Management remains optimistic that these factors will enable the company to exceed broader market performance for the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Silicon Laboratories Inc (SLAB, Financial) is $137.88 with a high estimate of $160.00 and a low estimate of $100.00. The average target implies an upside of 3.24% from the current price of $133.55. More detailed estimate data can be found on the Silicon Laboratories Inc (SLAB) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Silicon Laboratories Inc's (SLAB, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Silicon Laboratories Inc (SLAB, Financial) in one year is $153.40, suggesting a upside of 14.86% from the current price of $133.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Silicon Laboratories Inc (SLAB) Summary page.
SLAB Key Business Developments
Release Date: May 13, 2025
- Revenue: $178 million for the March quarter, up 7% sequentially and 67% year over year.
- Industrial and Commercial Revenue: $96 million, up 8% sequentially and 47% year over year.
- Home and Life Revenue: $82 million, up 5% sequentially and 99% year over year.
- Gross Margin: GAAP gross margin at 55%; non-GAAP gross margin at 55.4%.
- Operating Expenses: GAAP operating expenses were $130 million; non-GAAP operating expenses were $105 million.
- Operating Loss: GAAP operating loss of $32 million; non-GAAP operating loss of $7 million.
- Net Loss Per Share: GAAP loss per share of $0.94; non-GAAP loss per share of $0.08.
- Cash and Investments: Ended the quarter with $425 million in cash, cash equivalents, and short-term investments.
- Operating Cash Flow: Positive operating cash flow of $48 million for the March quarter.
- Inventory: Internal inventory reduced by $22 million, ending at $83 million; days of inventory on hand improved to 94 days.
- Revenue Guidance for June Quarter: Expected to be in the range of $185 million to $200 million, implying 32% year-over-year growth at the midpoint.
- Gross Margin Guidance for June Quarter: Expected to be in the range of 55% to 57% for both GAAP and non-GAAP.
- Non-GAAP Earnings Per Share Guidance: Expected to be in the range of $0.19 to a loss of $0.01.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Silicon Laboratories Inc (SLAB, Financial) reported strong first-quarter results with both sequential and year-over-year revenue growth across its business units.
- The Home and Life business nearly doubled year-over-year, driven by connected healthcare and smart home applications.
- The Industrial and Commercial business grew significantly, with high single-digit sequential growth and double-digit year-over-year growth.
- The company has successfully diversified its supply chain, minimizing the impact of geopolitical shifts and tariffs.
- Silicon Laboratories Inc (SLAB) introduced new products, including the BG29 family of Bluetooth low-energy SoCs, enhancing its IoT offerings.
Negative Points
- The macroeconomic environment remains uncertain, which could impact future performance.
- Despite revenue growth, the company reported a GAAP operating loss of $32 million and a non-GAAP operating loss of $7 million.
- Channel inventory levels are below the target, indicating potential supply chain challenges.
- The company is still navigating the potential indirect impacts of tariffs on global economic demand.
- There is ongoing uncertainty regarding global trade policies, which could affect customer behavior and demand.
