By Emily Bary
Shares of Synaptics Inc. rallied in after-hours trading Thursday after the chip company delivered a better-than-anticipated forecast while noting its “strong” backlog in the face of supply constraints.
The company generated fiscal second-quarter net income of $69.5 million, or $1.71 a share, up from $49.6 million, or $1.36 a share, in the year-prior quarter.
After adjusting for stock-based compensation, restructuring costs, and other expenses, Synaptics /zigman2/quotes/208827271/composite SYNA +3.69% earned $3.26 a share, up from $2.30 a share a year prior, while analysts tracked by FactSet were modeling $3.10 a share. Synaptics said in its earnings release that its adjusted net income of $132.8 million for the quarter marked a record.
Revenue at Synaptics increased to $420.5 million from $357.6 million, while analysts had been projecting $405.1 million.
Shares were up more than 7% in after-hours trading.
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“Our backlog remains strong, with customer demand continuing to outpace supply availability; we have once again factored in the current semiconductor supply-chain constraints and pricing changes into our March-quarter guidance,” Chief Financial Officer Dean Butler said in the company’s earnings release.
For the March quarter, Synaptics anticipates $450 million to $480 million in revenue, whereas analysts had been looking for $383 million.
Shares of Synpatics have rallied 94% over the past 12 months as the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.27% has advanced 17%.
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