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Synaptics (NASDAQ:SYNA) is expected to report Q2 earnings after the market close on Thursday, January 26 with a conference call scheduled for 5:00 pm ET.

Guidance

The consensus estimate is 62c for EPS and $145.38M for revenue, according to First Call. Management had provided Q2 revenue guidance of $141M-$149M, or down 1%-6%, with gross profit dollars up year-over-year.

Analyst Views

On Dec. 16, Needham had lowered its estimates on Synaptics based on softening demand in consumer notebooks and mixed handset sales. Synaptics derives 51% of its overall sales from the notebook market, of which the majority is sold to the consumer segment. Recent negative data points from Intel (NASDAQ:INTC), Taiwanese ODMs and supply-chain participants indicate a material deterioration in end demand in notebooks spanning until 2Q12. On the handset side, Needham expects mixed results. While the firm believes Synaptics has done a good job in transforming its business model, it sees near-term risks to Synaptics' core business segments. The firm maintains a Hold rating.

On its last earnings call, Synaptics lowered FY12 annual revenue guidance. Given the persistent weakness in the notebook segment and uncertainty in handsets, Needham see additional risk to Synaptics' FY12 guidance. Consensus for Q3: 55c on $138.08M in revenue. Consensus for FY12: $2.43 on $566.89M in revenue.

Source: Earnings Preview: Synaptics