Silicon Laboratories, Inc. Reports Negative Financial Results for Q2 2024

Jul 24 2024 12:00 AM IST

Silicon Laboratories, Inc. has reported a negative performance in the quarter ending June 2024, with a significant decrease in pre-tax and net profit. The company's inventory turnover ratio and net sales have also declined, indicating a slowdown. Additionally, the company's profitability and liquidity have been affected, with a decrease in cash and equivalents and debtors turnover ratio. The cost of raw materials has also increased, potentially impacting profit margins. Infinhub has given a 'Strong Sell' call for the company's stock.

Silicon Laboratories, Inc. has recently announced its financial results for the quarter ending June 2024. The company, which operates in the semiconductor industry, has seen a negative performance in this quarter.

According to the financial report, the company's pre-tax profit has fallen by 101.73% to USD -45.49 million, compared to the average net sales of the previous four periods which was USD -22.55 million. This trend is expected to continue in the near term. Similarly, the net profit has also decreased by 212.95% to USD -82.16 million, compared to the average net sales of the previous four periods which was USD -26.25 million.

The inventory turnover ratio, which measures the pace of selling inventory, has also decreased to 1.75%, the lowest in the last five semi-annual periods. This indicates a slowdown in the company's inventory turnover. Additionally, the net sales have fallen by 9.41% to USD 145.37 million, compared to the average net sales of the previous four periods which was USD 160.46 million.

The company's profitability has also been affected, with the net profit being the lowest at USD -82.16 million in the last five periods. This trend is expected to continue in the near term. The earnings per share (EPS) have also decreased to USD -2.56 million in the last five periods, indicating a decline in profitability and lower earnings for shareholders.

In terms of liquidity, the company's cash and equivalents have decreased to USD 671.86 million in the last six semi-annual periods, indicating a deterioration in short-term liquidity. The debtors turnover ratio, which measures the pace of selling debtors, has also decreased to 7.78% in the last five semi-annual periods.

Furthermore, the cost of raw materials has increased by 13.79% year-on-year, which may lead to a fall in profit margin as the company may not be able to pass on the cost to customers.

Overall, the financial results for the quarter ending June 2024 have not been favorable for Silicon Laboratories, Inc. and the stock has been given a 'Strong Sell' call by Infinhub. Investors should keep a close eye on the company's performance in the near term.

Silicon Laboratories, Inc.

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