Company’s unexpected loss and lower revenue forecast cause stock to hit three-year low
- Silicon Laboratories shares hit a three-year low
- Fourth-quarter guidance shows unexpected loss and lower revenue
- Stock fell 19% in early trading
- Shares have dropped 42% year-to-date
- Company expects adjusted loss of $1.22 to $1.66 per share
- Revenue expected to be $70 million to $100 million
- Analysts had been expecting earnings of 67 cents per share on $206.5 million in revenue
- Third-quarter results met or exceeded expectations
Shares of Silicon Laboratories hit a three-year low after the company guided for an unexpected fourth-quarter loss on revenue that’s less than half of what analysts had been forecasting. The stock fell 19% to a low of $74.56 in early trading. Shares have dropped 42% year-to-date and haven’t traded this low since March 2020. The Austin-based wireless-technology company said it expects to post an adjusted loss of between $1.22 and $1.66 a share for the fourth quarter on revenue of $70 million to $100 million. Analysts surveyed by FactSet had been expecting adjusted earnings of 67 cents on $206.5 million in revenue. The weak guidance comes after the company logged third-quarter results that met or exceeded expectations.
Factuality Level: 8
Factuality Justification: The article provides specific information about Silicon Laboratories’ stock performance, guidance, and financial results. It includes data on the company’s expected loss, revenue, and analyst projections. The information is supported by sources such as FactSet. However, the article does not contain any additional context or analysis, which could have provided a more comprehensive understanding of the situation.
Noise Level: 3
Noise Justification: The article provides relevant information about Silicon Laboratories’ stock performance and financial results. It includes details about the company’s fourth-quarter guidance, analysts’ expectations, and previous quarter results. The article stays on topic and supports its claims with data from FactSet. However, it lacks in-depth analysis or insights into the long-term trends or consequences of the company’s performance.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Silicon Laboratories
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the unexpected fourth-quarter loss and lower revenue guidance of Silicon Laboratories, which has led to a significant drop in the company’s stock price.
Public Companies: Silicon Laboratories (unknown)
Key People:
www.marketwatch.com 
