U.S. markets close in 4 hours
  • S&P 500

    3,796.78
    -22.05 (-0.58%)
     
  • Dow 30

    30,802.01
    -227.30 (-0.73%)
     
  • Nasdaq

    11,090.62
    -87.28 (-0.78%)
     
  • Russell 2000

    1,706.23
    -13.14 (-0.76%)
     
  • Crude Oil

    106.99
    -2.79 (-2.54%)
     
  • Gold

    1,813.20
    -4.30 (-0.24%)
     
  • Silver

    20.36
    -0.38 (-1.82%)
     
  • EUR/USD

    1.0471
    +0.0027 (+0.26%)
     
  • 10-Yr Bond

    3.0040
    -0.0890 (-2.88%)
     
  • GBP/USD

    1.2164
    +0.0042 (+0.34%)
     
  • USD/JPY

    135.6910
    -0.8540 (-0.63%)
     
  • BTC-USD

    19,129.66
    -967.23 (-4.81%)
     
  • CMC Crypto 200

    409.79
    -21.68 (-5.02%)
     
  • FTSE 100

    7,169.28
    -143.04 (-1.96%)
     
  • Nikkei 225

    26,393.04
    -411.56 (-1.54%)
     

What's in the Offing for Synaptics (SYNA) This Earnings Season?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Synaptics SYNA is scheduled to report third-quarter fiscal 2022 results on May 5.

For the fiscal third quarter, the company expects revenues between $450 million and $480 million. The Zacks Consensus Estimate for revenues is pegged at $465.8 million, indicating a year-over-year increase of 43%.

The Zacks Consensus Estimate for earnings stands at $3.55 per share, suggesting a jump of 74.9% year over year.

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.9%.

Let’s see how things have shaped up before this announcement.

Synaptics Incorporated Price and EPS Surprise

Synaptics Incorporated Price and EPS Surprise
Synaptics Incorporated Price and EPS Surprise

Synaptics Incorporated price-eps-surprise | Synaptics Incorporated Quote

Factors to Note

Synaptics’ fiscal third-quarter performance is likely to have benefited from a healthy backlog. Moreover, solid bookings, a growing customer base and healthy product sell-in and sell-through patterns are expected to have been key growth drivers.

Moreover, SYNA is a display component supplier of Apple, which witnessed an increase in iPhone and Mac sales during the December-end quarter. This is likely to have benefited Synaptics as well.

Additionally, for the Internet of Things business, the company’s solid prospects in the edge system on a chip are anticipated to have been a tailwind.

The company’s market-leading position for touchpads and secure fingerprint sensors in the personal computer market makes one optimistic about the upcoming quarterly release. The new design momentum with its Organic Light Emitting Diode touch sensors is also likely to have benefited the top line during the to-be-reported quarter.

Further, Synaptics’ focus on controlling the operating expenses with more disciplined spending and selective project investments is likely to have boosted profitability. The company’s cost-saving initiatives are expected to have resulted in a non-GAAP gross margin of 59.5-60.5% as projected by the company, marking the fourth consecutive quarter with a gross margin of more than 50%.

However, macroeconomic woes due to the pandemic were key concerns during the quarter under review. Moreover, pandemic-led continued supply-chain disruptions and component shortages are anticipated to have hurt Synaptics’ third-quarter top and bottom lines.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Synaptics this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Synaptics currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Stantec STN, Alcon ALC and Simon Property Group SPG have the right combination of elements to post an earnings beat in their upcoming releases.

Stantec carries a Zacks Rank #2 and has an Earnings ESP of +8.05%. The company is scheduled to report first-quarter 2022 results on May 11. Stantec’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, matched the same once and missed on one occasion, the average surprise being 0.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for STN’s first-quarter earnings is pegged at 47 cents per share, indicating a year-over-year increase of 23.7%. The consensus mark for revenues stands at $814.1 million, suggesting a year-over-year increase of 20.7%.

Alcon is slated to report first-quarter 2022 results on May 10. The company carries a Zacks Rank #3 and has an Earnings ESP of +10.04% at present. Alcon’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.5%.

The Zacks Consensus Estimate for quarterly earnings is pegged at 52 cents per share, suggesting a year-over-year improvement of 6.1%. ALC’s quarterly revenues are estimated to increase 6.8% year over year to $2.04 billion.

Simon Property currently carries a Zacks Rank #3 and has an Earnings ESP of +0.50%. The company is slated to report its first-quarter 2022 results on May 9. Simon Property’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 16.9%.

The Zacks Consensus Estimate for Simon Property’s first-quarter earnings stands at $2.74 per share, implying a year-over-year increase of 10.5%. SPG is estimated to report revenues of $1.33 billion, which suggests growth of 7.3% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Simon Property Group, Inc. (SPG) : Free Stock Analysis Report

Alcon (ALC) : Free Stock Analysis Report

Stantec Inc. (STN) : Free Stock Analysis Report

Synaptics Incorporated (SYNA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research