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SiTime (SITM) Set to Report Q4 Earnings: What's in Store?

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SiTime Corporation (SITM - Free Report) is slated to report fourth-quarter 2021 results on Feb 2.

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 53%.

For the fourth quarter, SiTime projects revenues to increase sequentially between 10% and 15%, which comes to a $69.3-$72.5 million range. The Zacks Consensus Estimate for revenues is pegged at $71 million, suggesting a whopping 76.3% increase from the year-ago quarter’s reported figure of $40.3 million.

Additionally, SITM forecasts adjusted earnings per share in the range of $1.05-$1.15. The consensus mark for earnings stands at $1.09 per share, calling for a robust 153.5% year-over-year increase.

Let’s see how things have shaped up before this announcement.

Factors to Note Ahead of Q4 Results

Santa Clara, CA-based SiTime is a market leader in offering micro-electromechanical systems-based silicon timing system solutions. Its resonators and clock integrated circuits are used in automotive, the Internet of things (IoT), mobile and wearables, consumer and aerospace defense.

The company’s fourth-quarter top line is likely to have benefited from strong order momentum as the need for timing solutions with higher precision, smaller size and higher resilience skyrockets and SiTime’s solutions find their way into an increasing number of connected devices present around us.

SiTime’s sales to the automotive end market are expected to have continued the growth momentum due to the increased popularity of electric vehicles, which use more electronics than the average car. Continuous design wins for applications like servers, high-speed Internet, SmartNICs and acceleration cards are likely to have boosted the company’s fourth-quarter top line.

However, the ongoing supply-chain constraint is anticipated to have hurt overall financial results during the fourth quarter. On its last earnings conference call, SiTime stated that current supply-chain headwinds have resulted in increased product costs and the company expects these will increase further over time. Tight component supply along with increased product costs might have weighed on the company’s to-be-reported quarter’s profitability.

What Our Model Says

Our proven model does not predict an earnings beat for SITM this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

SiTime currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of -4.15%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Advanced Micro Devices (AMD - Free Report) , Electronic Arts (EA - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.

Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.47%. The company is scheduled to report fourth-quarter 2021 results on Feb 1. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues stands at $4.52 billion, suggesting a year-over-year increase of 39.4%.

Electronic Arts is slated to report third-quarter fiscal 2022 results on Feb 1. The company carries a Zacks Rank #3 and has an Earnings ESP of +1.82% at present. Electronic Arts’ earnings beat the Zacks Consensus Estimate twice in the preceding four quarters and matched once while missing the same on one occasion, the average surprise being 11.7%.

The Zacks Consensus Estimate for Electronic Arts’ quarterly earnings is pegged at $3.22 per share, suggesting a year-over-year improvement of 4.2%. EA’s quarterly revenues are estimated to increase 10.9% year over year to $2.66 billion.

Alphabet currently carries a Zacks Rank #3 and has an Earnings ESP of +2.11%. The company is slated to report its fourth-quarter 2021 results on Feb 1. Alphabet’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.

The Zacks Consensus Estimate for Alphabet’s fourth-quarter earnings stands at $26.69 per share, implying a year-over-year increase of 19.7%. GOOGL is estimated to report revenues of $59.3 billion, which suggests growth of 27.8% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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