Synaptics
SYNA
is scheduled to report second-quarter fiscal 2022 results on Feb 3.
For the fiscal second quarter, the company expects revenues between $390 million and $420 million. The Zacks Consensus Estimate for revenues is pegged at $414.1 million, indicating a year-over-year increase of 15.8%.
The Zacks Consensus Estimate for earnings stands at $3.12 per share, suggesting a jump of 35.7% year over year.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.4%.
Let’s see how things have shaped up before this announcement.
Synaptics Incorporated Price and EPS Surprise
Synaptics Incorporated price-eps-surprise
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Synaptics Incorporated Quote
Factors to Note Ahead of Q2 Results
Synaptics’ fiscal second-quarter performance is likely to have benefited from a healthy backlog. Moreover, solid bookings, a growing customer base and healthy product sell-in and sell-through patterns are expected to have been key growth drivers.
The company’s market-leading position for both touchpads and secure fingerprint sensors in the personal computer market makes one optimistic about the upcoming quarterly release. The new design momentum with its Organic Light Emitting Diode touch sensors is also likely to have benefited the top line during the to-be-reported quarter.
Moreover, SYNA is a display component supplier of Apple, which witnessed an increase in iPhone and Mac sales during the December-end quarter. This is likely to have benefited Synaptics as well.
Additionally, for the Internet of Things business, the company’s solid prospects in the edge system on a chip are anticipated to have been a tailwind.
Further, Synaptics’ focus on controlling operating expenses with more disciplined spending and selective project investments is likely to have boosted profitability. The company’s cost-saving initiatives are expected to have resulted in non-GAAP gross margin of 58.5-59.5% as projected by the company, marking the third consecutive quarter with gross margin above 50%.
However, macroeconomic woes due to the pandemic were key concerns during the quarter under review. Moreover, pandemic-led continued supply-chain disruptions and component shortages are anticipated to have hurt Synaptics’ second-quarter top and bottom line lines.
What Our Model Says
Our proven model does not predict an earnings beat for SYNA this season. The combination of a positive
Earnings ESP
and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Synaptics currently carries a Zacks Rank of 2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our
Earnings ESP Filter
.
Stocks With the Favorable Combination
Per our model,
Advanced Micro Devices
AMD
,
Electronic Arts
EA
and
Alphabet
GOOGL
have the right combination of elements to post an earnings beat in their upcoming releases.
Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.47%. The company is scheduled to report fourth-quarter 2021 results on Feb 1. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues stands at $4.52 billion, suggesting a year-over-year increase of 39.4%.
Electronic Arts is slated to report third-quarter fiscal 2022 results on Feb 1. The company carries a Zacks Rank #3 and has an Earnings ESP of +1.82% at present. Electronic Arts’ earnings beat the Zacks Consensus Estimate twice in the preceding four quarters and matched once while missing the same on one occasion, the average surprise being 11.7%.
The Zacks Consensus Estimate for Electronic Arts’ quarterly earnings is pegged at $3.22 per share, suggesting a year-over-year improvement of 4.2%. EA’s quarterly revenues are estimated to increase 10.9% year over year to $2.66 billion.
Alphabet currently carries a Zacks Rank #3 and has an Earnings ESP of +2.11%. The company is slated to report its fourth-quarter 2021 results on Feb 1. Alphabet’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.
The Zacks Consensus Estimate for Alphabet’s fourth-quarter earnings stands at $26.69 per share, implying a year-over-year increase of 19.7%. GOOGL is estimated to report revenues of $59.3 billion, which suggests growth of 27.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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