Silicon Motion Technology (NASDAQ:SIMO) Releases Quarterly Earnings Results, Misses Expectations By $1.39 EPS

Key Points

• Silicon Motion reported quarterly EPS of $1.91, missing the consensus estimate of $3.30 by $1.39. The company posted a 22.06% net margin and a 32.04% return on equity.
• Shares rose 7.6% to $219.61 during mid-day trading despite the earnings miss. The stock has a market capitalization of approximately $7.45 billion.
• The company increased its quarterly dividend from $0.50 to $0.575 per share, equating to an annualized dividend of $2.30 and a 1.0% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $328.50.

Silicon Motion Technology (NASDAQ:SIMO - Get Free Report) announced its earnings results on Wednesday. The semiconductor producer reported $1.91 EPS for the quarter, missing the consensus estimate of $3.30 by ($1.39), Zacks reports. Silicon Motion Technology had a net margin of 22.06% and a return on equity of 32.04%.

Silicon Motion Technology Trading Up 7.6%

NASDAQ SIMO traded up $15.44 during mid-day trading on Wednesday, reaching $219.61. 1,495,604 shares of the company's stock traded hands, compared to its average volume of 880,626. Silicon Motion Technology has a 1-year low of $79.76 and a 1-year high of $355.00. The company has a fifty day simple moving average of $250.60 and a 200-day simple moving average of $211.95. The company has a market cap of $7.45 billion, a price-to-earnings ratio of 25.75, a P/E/G ratio of 0.33 and a beta of 1.69.

Silicon Motion Technology Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be paid a dividend of $0.5750 per share. This is a boost from Silicon Motion Technology's previous quarterly dividend of $0.50. The ex-dividend date is Thursday, November 5th. This represents a $2.30 dividend on an annualized basis and a yield of 1.0%. Silicon Motion Technology's payout ratio is 26.85%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on SIMO. Roth Capital reaffirmed a "buy" rating and issued a $350.00 price objective on shares of Silicon Motion Technology in a research report on Thursday, July 30th. Weiss Ratings cut shares of Silicon Motion Technology from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 16th. China Renaissance started coverage on shares of Silicon Motion Technology in a research note on Wednesday. They issued a "buy" rating and a $300.00 target price for the company. Susquehanna upped their target price on shares of Silicon Motion Technology from $275.00 to $350.00 and gave the company a "positive" rating in a research note on Friday, July 31st. Finally, B. Riley Financial lowered their price target on shares of Silicon Motion Technology from $350.00 to $288.00 and set a "buy" rating for the company in a report on Friday, October 23rd. Ten research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Silicon Motion Technology currently has a consensus rating of "Moderate Buy" and a consensus price target of $328.50.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation is a fabless semiconductor company that designs, develops and markets NAND flash storage controllers. Its products manage the storage, performance, reliability and power consumption of data stored in NAND flash memory and are used in a range of consumer, mobile, computing and industrial applications.

The company's product portfolio includes controllers for solid-state drives (SSDs), embedded storage products such as eMMC and UFS devices, and other flash-based storage solutions.

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