The chart below shows how SLAB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SLAB sees a +5.62% change in stock price 10 days leading up to the earnings, and a +2.59% change 10 days following the report. On the earnings day itself, the stock moves by -0.83%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue Recovery: Silicon Labs achieved a revenue of $166 million in Q4 2024, marking a 91% increase from the lowest point in Q4 2023, indicating a strong recovery trajectory.
Home & Life Revenue Surge: The Home & Life segment saw a remarkable year-over-year revenue increase of nearly threefold, reaching $78 million in Q4 2024, driven by new program ramps and medical applications.
Industrial & Commercial Revenue Surge: The Industrial & Commercial business reported a 50% year-over-year revenue growth in Q4 2024, reflecting a significant recovery as customers worked through excess inventory.
Strong Gross Margin Performance: Silicon Labs ended Q4 2024 with a GAAP gross margin of 54.3%, maintaining a strong margin profile that reinforces the value of its product portfolio despite market challenges.
Inventory Reduction Impact: The company reduced its internal inventory by $34 million in Q4 2024, ending with $106 million, which contributed to a positive operating cash flow of $10 million, showcasing effective cost management.
Negative
Revenue Decline Analysis: Revenue for fiscal year 2024 was $584 million, representing a year-over-year decline of approximately 25%.
Revenue Decline in Segment: The Industrial & Commercial products segment experienced a significant 32% decline in revenue as customers depleted excess inventory throughout the year.
Home & Life Sales Decline: Home & Life products also saw a decline of 14% compared to the prior year, indicating challenges in maintaining sales levels.
Operating Loss Improvement: GAAP operating loss for Q4 was $29 million, an improvement from the previous year's loss of $73 million, but still reflects ongoing financial struggles.
Quarterly Loss Per Share: GAAP loss per share for the quarter was $0.73, indicating continued losses despite some operational improvements.
Silicon Laboratories Inc. (NASDAQ:SLAB) Q4 2024 Earnings Call Transcript
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