Shares of Synaptics (NASDAQ: SYNA) tanked in pre-market trading as the developer of human interface hardware and software guided for Q4 revenues in the range of $210 million to $240 million below consensus estimates of $328.3 million. The company expects adjusted gross margin in Q4 to be between 56% and 58%.
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Dean Butler, Synaptics’ CFO commented on the lower-than-expected outlook, “Customer forecasts are being moderated in response to the current economic slowdown. At the same time, inventories are being worked down across the entire supply chain. As a result, we expect our June quarter revenue to decline sequentially, and we have begun to implement spending controls.”
Synaptics’ fiscal third quarter revenues fell by 30.5% year-over-year to $326.6 million but above consensus estimates of $298.22 million. Adjusted earnings came in at $1.89 per share versus $3.75 per share in the same period last year but exceeded analysts’ expectations of $1.40 per share.
Analysts remain bullish about SYNA stock with a Strong Buy consensus rating based on four Buys and one Hold.
