NASDAQ$SYNA

Synaptics Inc. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong Q3 2021 results driven by record gross margins, PC revenue, and EPS near the upper end of guidance.

Synaptics reported a strong start to 2021 with record gross margins and PC revenue. The company's strategy to focus on IoT products is improving its financial foundation, enabling more aggressive market engagement and long-term revenue and earnings growth.

  • Revenue reached $325.8 million.
  • GAAP gross margin was 47.7 percent.
  • Non-GAAP gross margin hit a record of 55.1 percent.
  • Non-GAAP diluted earnings per share was $2.03.

Headline financials

Total Revenue

$326M

Previous: $328M-0.7%
EPS (adj)

$2.03

Previous: $1.49+36.2%
Capital Expenditures

-$15.5M

Previous: -$11.7M-32.5%
Free Cash Flow

-$1.7M

Previous: -$6.7M+74.6%
Net Income

$13.8M

Previous: $5M+176.0%
Operating Income

$31.6M

Previous: $19M+66.3%
Gross Profit

$156M

Previous: $136M+14.7%
Cash & Equivalents

$756M

Previous: $472M+60.2%
Total Assets

$2.18B

Previous: $1.48B+47.3%
Stock-Based Comp

$16.3M

Previous: $13.8M+18.1%

Revenue & EPS history

Synaptics · Revenue · Quarterly

$326M

Q3 2021-0.7%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

For the fourth fiscal quarter, Synaptics expects revenue to outperform typical seasonality and gross margin to strengthen due to the growth of IoT. Backlog remains strong, with customer demand outpacing supply availability.

Tailwinds

  • Revenue is expected to be between $310 million and $340 million.
  • Gross margin is projected to be between 50.0 percent and 52.0 percent.
  • Non-GAAP gross margin is expected to be between 55.5 percent and 57.5 percent.
  • Operating expense is projected to be between $121 million and $125 million.
  • Non-GAAP operating expense is expected to be between $86 million and $89 million.

Headwinds

  • Semiconductor supply chain constraints have been factored into the June quarter guidance.
  • Projected Non-GAAP gross margin excludes $17 million of intangible asset amortization.
  • Projected Non-GAAP gross margin excludes $1 million of stock-based compensation.
  • Projected Non-GAAP operating expense excludes $23 million to $24 million of stock-based compensation.
  • Projected Non-GAAP operating expense excludes up to $1 million of restructuring costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+2.0%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

59%

39 / 66 earnings

Positive

+27.5%

Q1 2020

Best reaction

-21.7%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+18.3%+23.6%+16.0%
Q2 2026+2.2%+3.9%-17.5%
Q1 2026-3.7%-1.5%+13.1%
Q3 2025+0.2%+10.6%+4.6%
Q2 2025-4.7%-4.0%-10.2%
Q1 2025+12.1%+6.6%+11.5%
Q4 2024+6.8%+10.6%+4.8%
Q3 2024-2.3%-1.6%+1.2%
Q2 2024+3.8%+0.1%-0.5%
Q4 2023+2.9%+6.3%+1.0%
Q3 2023-16.6%-13.9%-7.3%
Q2 2023-5.9%-2.0%-10.2%
Q1 2023+2.4%+11.1%+19.3%
Q4 2022-2.3%-13.7%-24.3%
Q3 2022-6.7%-11.1%-14.7%
Q2 2022-5.0%-2.0%-1.4%
Q1 2022+15.4%+17.8%+29.7%
Q4 2021+17.0%+17.6%+30.4%
Q3 2021-2.6%-7.6%+1.9%
Q2 2021+13.2%+16.8%+25.7%
Q1 2021+5.9%+0.8%+4.6%
Q4 2020+8.9%+5.1%+1.2%
Q3 2020+1.7%-1.6%+9.0%
Q2 2020+20.6%+16.4%-3.1%
Q1 2020+27.5%+29.2%+25.9%
Q4 2019+6.6%+7.5%+10.8%
Q3 2019-5.7%-3.6%-16.6%
Q2 2019+0.4%-1.7%+0.3%
Q1 2019+2.3%-1.9%+3.6%
Q4 2018-13.1%-3.4%-3.7%
Q3 2018-0.0%-7.6%+3.4%
Q2 2018+7.3%+8.1%+18.6%
Q1 2018+17.3%+10.0%-1.0%
Q4 2017-12.0%-17.4%-20.1%
Q3 2017+4.3%+2.3%+5.1%
Q2 2017-9.2%-5.8%-7.2%
Q1 2017-21.7%-20.5%-18.1%
Q4 2016-3.1%-0.5%+3.8%
Q3 2016-16.7%
Q2 2016+9.4%
Q1 2016+5.4%
Q4 2015-0.6%
Q3 2015-4.3%
Q2 2015+14.6%
Q1 2015-16.0%
Q4 2014+2.9%
Q3 2014-4.5%
Q2 2014+5.8%
Q1 2014-14.5%
Q4 2013+1.8%
Q3 2013+6.2%
Q2 2013+11.7%
Q1 2013+5.9%
Q4 2012+11.1%
Q3 2012-5.9%
Q2 2012+1.9%
Q1 2012-1.9%
Q4 2011+7.8%
Q4 2009+7.8%
Q3 2010-1.6%
Q3 2011-1.6%
Q2 2011-0.4%
Q1 2010+7.1%
Q1 2011+7.1%
Q2 2010+7.1%
Q4 2010+7.1%

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