Earlier plays

Silicon Labs (SLAB)

Secondary plays: NSM, ADI, INTC, MXIM, TXN, BRCM, SMTC, ATML, ONNN...

29-Jan-08 15:53 ET Earnings Preview -Update : SLAB is expected to report Q4 earnings 1/30 before the mkt opens followed by a conference call at 8:30 ET... SLAB Consensus: First Call consensus is Q4 EPS of $0.38 on revs of $95.57 mln; Q1 EPS of $0.34 on revs of $90 mln; FY07 EPS of $1.24 on revs of $332.63 mln; FY08 EPS of $1.63 on revs of $393.46 mln... Guidance: Co guided in Q3 press release on 10/24, issued upside Q4 guidance of $93-97 mln vs $90 mln consensus. The stock closed up 6% that day, but has traded down 35% since reporting Q3... Expectations: Since 2000, co has never missed earnings estimates (beat every time and reported in-line twice) and no difference is expected this qtr. Revs growth YoY has been positive for past 8 qtrs, although last Q4 YoY growth was only 1.1%. Guidance tends to lead the way for the stock movement and just like others in the semiconductor sector, margin carries a lot of weight. The co has gross margin tgt of 60-62% and set a goal of 25% operating margins by the end of this year... On 12/11, Friedman Billings initiated with Mkt Perform and $38 tgt but remain neutral given their valuation metrics reflect the co's key growth opportunities and has some concerns that revs growth in 2008 could slow before other products pick up the slack in 2009. Kaufman initiated with Buy and $50 tgt on 10/30 saying co has diversified portfolio of high growth and high margin mixed-signal analog products and expect stream of new products that target new high volume opportunities through low-cost, integrated solutions... Briefing note: Short interest is 7%, mkt cap is $1.54 bln, float is 50.61 mln and avg volume is 1.1 mln... Areas of Focus on the Call:
1) recent takeover speculation such as IFX for SLAB rumors
2) FY08 outlook
3) Gross and operating margins... Recent price movement: Since reporting last qtr, stock is trading down 35% and made new multi-year lows. Stock is down 24% over past 20 days, but up 6% over past week (note this recent upward trend follows TXN beating estimates on 1/22 and BRCM beating estimates on 1/24)...