Synaptics Shares Soar 13% As Q2 Results Top Estimates, Rosy Outlook

(RTTNews) - Shares of Synaptics, Inc. (SYNA) soared nearly 13 percent in extended trade on Thursday after the human interface solutions provider reported results for the second quarter that topped analysts' expectations. The company also provided revenue guidance for the third quarter, above Street view.

The company reported a profit for the quarter that grew from last year, reflecting strong double-digit revenue growth amid strong growth of its core business and the addition of Renesas SP Drivers.

The company noted that results reflect the first quarter of consolidated results from the $475 million acquisition of Japanese display chip-maker Renesas SP Drivers, Inc., completed on October 1, 2014.

"Synaptics achieved record top-line results for the second quarter, which included strong contributions from our new display drivers business," President and CEO Rick Bergman said in a statement.

The Santa Clara, California-based maker of touchscreen pads for smartphones and tablets reported net income of $19.97 million or $0.52 per share for the second quarter, higher than $17.33 million or $0.48 per share in the prior year quarter.

Excluding items, adjusted net income for the quarter was $55.80 million or $1.46 per share, compared to $31.12 million or $0.86 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.22 per share for the quarter. Analysts' estimate typically exclude special items.

Net revenue for the quarter soared 125 percent to $463.71 million from $205.76 million in the same quarter, and topped fifteen Wall Street analysts' consensus estimate of $449.41 million.

Revenue from mobile products, including all touchscreen, video display, and applicable fingerprint ID products, skyrocketed 198 percent to $398.3 million, while revenue from PC products, including applicable fingerprint ID products, decreased 9 percent to $65.4 million from the prior-year quarter.

Looking ahead to the third quarter, the company expects revenues in a range of $450 million to $490 million. Street is looking for quarterly revenues of $423.79 million.

"We continue to execute across our strategic growth initiatives, with our new area touch fingerprint sensor and the market's first touch and display driver integrated (TDDI) solution now in mass production. We are very optimistic regarding our outlook for the second half of fiscal 2015 and are tracking well towards our combined operating model following the integration of RSP," Bergman added.

SYNA closed Thursday's regular trading session at $68.31, up $1.28 or 1.91% on a volume of 1.29 million shares. The stock soared a further $8.70 or 12.74% in after hours trading.