Chipmaker Silicon Laboratories(SLAB) on Wednesday crushed expectations for its fiscal third quarter and guided much higher for the current period. The news sent SLAB stock skyward.
The Austin, Texas-based company earned an adjusted 34 cents a share on sales of $184.8 million in the quarter ended Oct. 2. Analysts expected Silicon Labs to earn 15 cents a share on sales of $175.2 million, according to FactSet.
Its sales from continuing operations rose 39% year over year. During the third quarter, Silicon Labs completed the divestiture of its Infrastructure and Automotive business to Skyworks Solutions(SWKS) for $2.75 billion in cash.
For the current quarter, Silicon Labs expects to earn an adjusted 55 cents a share on sales of $200 million. That's based on the midpoint of its outlook. Wall Street was modeling earnings of 19 cents a share on sales of $179 million, FactSet said.
SLAB Stock Breaks Out
On the stock market today, SLAB stock rocketed 18.9% to close at 184.06. Earlier in the session, it notched a record high of 189.39.
On Wednesday, SLAB stock broke out of a 36-week consolidation period at abuy point of 163.53, according to IBD MarketSmithcharts.
Silicon Labs is a leader in wireless chips for Internet of Things, or IoT, applications.
"IoT solutions are being adopted at a rapid pace in large, diverse, and fast-growing home and industrial end markets," Chief Executive Tyson Tuttle said in a news release.
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