Silicon Motion Technology
(SIMO - Analyst Report
) recently beat
the Zacks Consensus Estimate and will report again in late July. The stock is a Zacks Rank #1
(Strong Buy) and today it is the Bull of the Day.
SIMO beat the Zacks Consensus Estimate of $0.55 by $0.07 for a
12% positive earnings surprise. The topline was equally as strong with the company reporting revenues of $113M and that was $8M more than expected tofr 7.7% positive revenue surprise.
Silicon Motion Technology is a fabless semiconductor company. Silicon Motion Technology was founded in 1995 and is headquartered in Zhubei City, Taiwan.
Over the last seven quarters that I have data for, I see the company topped the Zacks Consensus Estimate six times. These were not small beats either, going back to March 2015 we saw a 21% positive earnings surprise, then a 22% surprise followed by 20% and 12%.
On the topline there are a few times with stagnant growth but the most recent quarter saw a nice lift in revenues. The company reported a 7% positive revenue surprise in the most recent quarter and that is something aggressive growth investors like to see.
We have seen a recent kick lower to $2.26, but that could be a number just coming out of the consensus.
The 2017 Zacks Consensus Estimate also saw a recent dip but that came after a big move up. The Zacks Consensus Estimate moved from $2.34 in March to $2.71 in April. Since then we have seen the number come in by 4 cents.
The valuation is a little stiff for SIMO. 18x forward PE is a little more than the 15x industry average. The price to book multiple of 3.6x is well above the industry average of 2.6x. The price to sales multiple data is exactly the same as the book data.
Zacks has developed a chart that helps investors see how
earnings estimates have
the price of the stock over the last several years. We call
this chart the
consensus chart, and each color coded lines represents
analyst estimates over a
designated year. As estimates increase, the stock tends to
follow. The Zacks
impacted by earnings estimate increases, beats and
incorporates the idea of
agreement and magnitude. As a
Zacks Rank #1 (Strong Buy) we see that estimates are moving
Follow Brian Bolan on twitter at
Brian Bolan is a Stock Strategist
for Zacks.com. He is the Editor in charge of the Zacks Stocks
Under $10, an
service , where he recommends the
stocks in the portfolio.
Brian also runs the brand new Zacks Game
Changers where he looks for stocks that are disrupting
industries and reaping big