Small Cap Stock Silicom Gains On Q2 Earnings Beat, Robust Q3 Outlook

Silicom Ltd SILC reported second-quarter FY21 revenue growth of 31% year-on-year to $30.3 million, beating the analyst consensus of $29 million.
Non-GAAP EPS of $0.42 beat the analyst consensus of $0.34.
The non-GAAP gross margin expanded 180 bps to 35.8%, and the non-GAAP operating margin expanded 336 bps to 11.8%.
Silicom held $45.8 million in cash and equivalents.
The strong growth in revenues and profits demonstrates the importance of its performance-boosting smart platforms and smart cards for the market's strategic shift to the cloud and adoption of open/disaggregated fixed and mobile network infrastructures, CEO Shaike Orbach stated.
Outlook: Silicom sees Q3 revenue of $32 million- $33 million above the analyst consensus of $31.2 million.
Price action: SILC shares traded higher by 3.05% at $44.71 in the market session on the last check Thursday.

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