Earnings Preview: Synaptics

| About: Synaptics Incorporated (SYNA)

Synaptics (NASDAQ:SYNA) is expected to report Q4 earnings after the market close on Thursday, August 2, with a conference call scheduled for 5:00 pm ET.


The consensus estimate is 51c for EPS and $136.17M for revenue, according to First Call. Guidance from management on its last earnings call was for Q4 revenue of $133M-$140M, below the then consensus of $149.54M. Comparing this Q4 report with the prior-year quarter, average analyst estimates predict Synaptics' revenues will wither -4.7% and EPS will shrink -8.8%.

Analyst Views

On July 9, Stifel Nicolaus lowered its estimates for Synaptics to reflect a 3% sequential PC unit growth in the September quarter from its previous 8% sequential growth estimate. The firm sees the combination of continued weak macro-economic conditions, Q4 Windows 8 launch and, in its view, high priced Ultrabooks as driving a below seasonal September quarter for the PC industry. Importantly, Stifel continues to view data centers as an area of strength, as cloud computing services offer cost reductions across industries and governments. Stifel maintains a Buy rating for Synaptics. Synaptics will host an analyst/investor meeting on Aug. 7.