Silicon Labs Q3 Sales Exceed Analyst Predictions, But CEO Says 'Current Demand Environment Remains Quite Weak'

Silicon Laboratories Inc SLAB reported Q3 FY23 sales of $203.76 million, down 24.5% Y/Y, in line with guidance, beating the consensus of $200.24 million. 

Margins: Adjusted gross margin of 58.5% and adjusted operating margin of 12% fell from 61.0% and 20.0% a year ago, respectively. 

The fabless global technology company's adjusted EPS of 62 cents ($1.21 a year ago) beat the consensus of 61 cents.

Industrial & Commercial revenue for the quarter was $121 million, down from $146 million in Q3 FY22. Home & Life revenue for the quarter was $83 million, down from $124 million in Q3 FY22.

CEO Matt Johnson said, "The current demand environment remains quite weak as we navigate this cyclical inventory correction, and end market visibility continues to be challenging."

Outlook: Silicon Lab sees Q4 FY23 revenue of $70 million-$100 million versus the consensus of $204.93 million.

The company sees an adjusted EPS loss of $(1.66) - $(1.22), against the consensus of 67 cents.

The stock is down 37% YTD.

Price Action: SLAB was trading 9.9% lower at $83.14 at last check Wednesday.

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