Shares of chip designer Silicon Laboratories (NASDAQ: SLAB) surged 25% higher this week, according to data provided by S&P Global Market Intelligence . A third-quarter 2021 earnings report that beat all expectations was responsible. Revenue grew 39% year over year to $185 million, but it was adjusted earnings per share of $0.34 -- more than double what the average Wall Street analyst was forecasting -- that really caused the stock to pop.
Image source: Getty Images.
Also in Q3, Silicon Labs completed the sale of its infrastructure and automotive segment to fellow connectivity chip designer Skyworks Solutions (NASDAQ: SWKS) . The divestiture focuses Silicon Labs on the Internet of Things (IoT) chips for smart home devices and industrial equipment -- circuits that convert real-world "analog" signals like sound or radio waves into an electronic signal a computing chip can process. The deal with Skyworks sent $2.75 billion in cash to Silicon Labs. Management promptly returned $1.1 billion of that cash to shareholders via open market-share repurchases and a $400 million accelerated repurchase executed in Q3.
For further details see:
Why Silicon Laboratories Stock Was Up 25% This Week