Why Are Silicon Labs Shares Trading Higher Today?

Silicon Laboratories Inc SLAB reported third-quarter FY21 IoT revenue from continuing operations growth of 39% Y/Y to $184.8 million, beating the consensus of $175.2 million.
Margins: The non-GAAP gross margin was stable at 59.4%. The non-GAAP operating margin contracted 790 bps to 9%.
The non-GAAP EPS of $0.34 beat the consensus of $0.15.
Silicon Labs held $2.7 billion in cash and equivalents and generated $48.2 million in operating cash flow during the nine months ended October 2, 2021.
"IoT solutions are being adopted at a rapid pace in large, diverse, and fast-growing home and industrial end markets," CEO Tyson Tuttle said.
Outlook: It sees Q4 revenue from continuing operations of $195 million- $205 million above the consensus of $179.8 million and non-GAAP EPS of $0.50 - $0.60 above the consensus of $0.19.
Buyback: The board authorized the share repurchase of up to an incremental $400 million.
Price Action: SLAB shares traded higher by 19.50% at $185.07 on the last check Wednesday.

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