Silicon Laboratories Inc. (NASDAQ:SLAB) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

It's been a good week for Silicon Laboratories Inc. (NASDAQ:SLAB) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.0% to US$122. Revenues of US$106m were in line with expectations, although statutory losses per share were US$1.77, some 10% smaller than was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Silicon Laboratories

Following last week's earnings report, Silicon Laboratories' eleven analysts are forecasting 2024 revenues to be US$632.4m, approximately in line with the last 12 months. Losses are forecast to balloon 27% to US$4.18 per share. Before this earnings announcement, the analysts had been modelling revenues of US$666.8m and losses of US$3.30 per share in 2024. While this year's revenue estimates dropped there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 5.8% to US$141, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Silicon Laboratories, with the most bullish analyst valuing it at US$160 and the most bearish at US$117 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Silicon Laboratories shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Silicon Laboratories' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.9% annualised decline to the end of 2024. That is a notable change from historical growth of 5.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Silicon Laboratories is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Silicon Laboratories analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Silicon Laboratories Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.