Silicon Labs Q2 profit tops estimates on strong demand

Silicon Laboratories Inc. reported second-quarter adjusted earnings that exceeded market expectations, driven by sustained demand in automotive and Internet of Things (IoT) applications.

The Austin, Texas-based semiconductor company said adjusted earnings per share came in at $1.85, surpassing the consensus estimate of $1.62 among analysts surveyed by Refinitiv. Revenue for the quarter totaled $324.7 million, up 12% year-over-year and in line with the midpoint of the company’s guidance range.

Gross margin expanded to 62.1%, compared with 59.8% in the same period last year, reflecting improved pricing and operational efficiencies. Operating income rose to $89.3 million from $62.1 million a year earlier, while net income increased to $78.2 million from $55.6 million.

Silicon Labs attributed the outperformance to strong design wins in automotive and industrial IoT segments, as well as continued growth in its wireless connectivity portfolio. The company maintained its full-year revenue guidance of $1.25 billion to $1.30 billion, signaling confidence in sustained end-market demand.

Shares of Silicon Labs were up 3.5% in pre-market trading following the results.