When I wrote the article Touch the Future with Synaptics for TheStreet.com back on October 8th, I had an idea Synaptics (Nasdaq: SYNA), a maker of touch screens/scroll wheels for electronic devices would have a solid quarter. But I greatly underestimated how
s-climb-mobility-sales/story.aspx?guid=%7BFE3439FF%2DC24F%2D4975%2D8141%2D50548A7121F8%7D&siteid=yhoof”>strong a quarter it would turn out to be and how large a stock price increase would result (or else you can bet your ass I would’ve been more aggressive in my call).
Quarterly revenues jumped $55 million to $87 million from last year, they crushed earnings estimates (coming in with 54 cents/share (excluding one-time items) vs. estimates of 41 cents/share) and they boosted their future exptations just a little as they have a nice sized backlog and seem to be winning over several cell phone makers – namely LG and Samsung.
Previous earnings estimates for next year were $2.96/share – now I gotta believe they’ll be pushed up to at least $3.25/share, maybe more. Even with this 20% jump in stock price today to $60/share that puts the forward PE at 18.5 – not too shabby for a company with an incredibly hot technology and whose revenues are growing in the 25-30% range.
I expect further upside for the stock, but it’s for long-term investors, not TIM.
Disclosure Timothy Sykes and TIM have no position.
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