Silicon Laboratories Inc. (NASDAQ:SLAB) Released Earnings Last Week And Analysts Lifted Their Price Target To US$149
Shareholders of Silicon Laboratories Inc. (NASDAQ:SLAB) will be pleased this week, given that the stock price is up 13% to US$137 following its latest annual results. Revenues were in line with expectations, at US$782m, while statutory losses ballooned to US$1.09 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Silicon Laboratories
After the latest results, the consensus from Silicon Laboratories' eleven analysts is for revenues of US$665.0m in 2024, which would reflect a not inconsiderable 15% decline in revenue compared to the last year of performance. Per-share losses are expected to explode, reaching US$3.30 per share. Before this latest report, the consensus had been expecting revenues of US$655.6m and US$2.68 per share in losses. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Despite expectations of heavier losses next year,the analysts have lifted their price target 10% to US$149, perhaps implying these losses are not expected to be recurring over the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Silicon Laboratories analyst has a price target of US$165 per share, while the most pessimistic values it at US$134. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 15% by the end of 2024. This indicates a significant reduction from annual growth of 6.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Silicon Laboratories is expected to lag the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Silicon Laboratories. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Silicon Laboratories going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for Silicon Laboratories that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
