Semiconductor products maker Silicon Motion Technology Corp. (NASDAQ: SIMO) has mentioned that it expects first-quarter revenue to come in above the previously announced guidance range of $225 million to $238 million.
Further, the company anticipates Gross margin to be around 52%, higher than the guidance range of 49.5% to 51.5%.
SIMO is scheduled to release its first-quarter results on May 4. Shares of the company closed 0.6% up on Friday at $71.99.
Q4 Highlights
Silicon Motion ended last year on an excellent note with fourth-quarter revenue and earnings beating the Street’s estimate.
Revenue surged 4% quarter-over-quarter and 84% year-over-year to $264.4 million, and EPS stood at $1.90 versus $1.70 in the third quarter and $0.86 a year ago.
Analysts had expected the company to report revenue and EPS of $262.52 million and $1.76, respectively.
About Silicon Motion
The company makes NAND flash controller integrated circuits for solid-state storage devices. It provides these circuits for commercial, enterprise, and industrial applications ranging from SSDs, eMMCs, memory cards, and USB flash drives.
Price Target
Based on four Buys and one Hold, Silicon Motion Technology has a Strong Buy consensus rating. SIMO’s average price target of $113.50 implies 57.7% upside potential from current levels. Shares have lost 23.7% year-to-date.
Conclusion
Silicon Motion’s expectation of a solid quarter is a positive for the company. Further, the SIMO stock is expected to rise if the company’s first-quarter results are in line with its expectations.
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