Synaptics - Second Warning In As Many Months

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About: Synaptics Incorporated (SYNA)
by: The Value Investor
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The Value Investor
Long/short equity, special situations, value
Summary

Synaptics is disappointing investors for the second time in as many months.

The company's 2018 outlook is disappointing, as core sales are seen down by nearly 10%.

Investors worry about the decline in the core business, as they are not convinced that the $450 million payment for recent IoT acquisitions will pay off.

I see few triggers on the horizon in the near term, even as valuations have come down quite a bit already, as I maintain my neutral stance at these levels.

Synaptics (SYNA) ended its fiscal year of 2017 on a soft note, despite somewhat resilient operating conditions for the wider industry. The company calls for modest growth in 2018, but that is misleading