Synaptics announced earnings

Synaptics, one of my big positions, announced earnings today.…

They do touch screen technology.

Revenue was up 44%.
Adjusted Earnings were up 62%.
They had $369 million in Cash.
Cash Flow from Operations was $57 million for the quarter. repurchased Repurchased 1.7 million shares in the last six months.
Trailing Adjusted Earnings are $4.35.
They are selling at roughly $56.
PE ratio is thus a little less than 13(!?)



Saul, assuming someone did their due diligence, researched the companies, and liked them as investments, which companies in your portfolio would you still recommend buying given current valuations?



Synaptics, one of my big positions, announced earnings today.

…Saul, the guidance seemed a tad weak, does the company have a history of sandbagging?..

…seems like they hit north of the midpoint in their guidance this past Q, and looking forward, the high point of guidance would barely meet estimates…

…the valuation relative to growth is appealing, however…

…thanks for the heads up…

A great quote from the Synaptics conference call:

Richard Bergman - President and CEO
“Well, Rob, as I said the top priority is for us is still growth. And as long as we see some great opportunities out there in the markets, in the businesses that we have, we’re going to continue to invest ahead of that curve. So both on the touch controller side as well as the fingerprint side, we see robust opportunities. So we’re investing in both of those businesses.

I will say in the fingerprint side, we’re having a tough time dealing with all the opportunities, so we’re trying to add as many people as quickly as we can over the next couple of quarters, but at the same time, we never comprise. We want the best people in the industry.

I think one of the things that gets a kind of little bit ignored about Synaptics is what we’ve done in terms of investment and R&D. We have kept that at nice, healthy percentages, so we can have that growth. But we do a really good job managing the SG&A side of things as well. It’s about 10% of our revenue. And in that way we kind of manage the overall OpEx, so more of that translates to the bottomline”.


Been looking at reports of this company and it’s opportunities in Sapphire which Apple is using to possibly use for iPhone screens and or iWatch. Just curious how did you discover this stock? Great find again.