Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyon ...

The SM770 supports up to three 4K 60Hz UHD displays and up to 144Hz display, allowing flexible connections with PC notebooks, ideally for commercial use, shared office users, and gamers.TAIPEI and MILPITAS, Calif., June 3, 2024 /PRNewswire/ -- Silicon Motion Technology Corporation (NasdaqGS: SIMO), a global leader in designing and marketing controller solutions for display interface and NAND storage, today announced the launch of the SM770 USB display interface SoC for USB docking stations to simplify conne ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Silicon Motion (SIMO) .Silicon Motion currently has an average brokerage recommendation (ABR) o ...

Core Viewpoint - Silicon Motion Technology Corporation (SIMO) has experienced a 32.9% increase in share price over the past six months, attributed to strong revenues and a flexible business model that meets client needs [1] Growth Drivers - The company has restructured its organizational framework to enhance growth in a challenging macroeconomic environment, establishing two business units: Client & Automotive Storage (CAS) and Enterprise Storage & Display Interface Solution (ESDI) [2] - The CAS unit focuses on client SSD controllers and mobile controllers, while the ESDI unit targets enterprise SSD controllers and display interface products [2] Market Position and Technology Focus - Silicon Motion is recognized as the leading merchant supplier of client SSD controllers, with a shift from MLC to TLC flash among clients, prompting a focus on manufacturing SSD controllers for TLC flash [3] - The company anticipates that the market will increasingly favor TLC SSDs, which offer superior performance compared to mechanical hard disk drives (HDDs), leading to greater adoption in PCs [4] Product Development and Sales - The company has collaborated with flash vendors to develop proprietary controller technology, initiating sales of 3D SSD controllers, which are expected to drive significant growth as NAND Flash partners expand their 3D capacity [5] - Mass production of PCIe NVMe client SSD controllers has commenced, indicating strong prospects for product sales amid favorable industry trends [5] Market Trends and Performance - Silicon Motion's eMMC segment is showing signs of recovery, with a shift from eMMC 4.5 to eMMC 5.0 expected to enhance sales of eMMC 5.1 controllers [5] - Over the past decade, the company has shipped over 6 billion controllers, maintaining a strong growth trajectory with an average annual shipment of more than 750 million NAND controllers [6] Financial Performance - The company has delivered an earnings surprise of 4.7% on average over the trailing four quarters, with a long-term earnings growth expectation of 38.2% [6]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score ...

Silicon Motion (SIMO) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this chip company have returned +2.4%, compared to the Zacks S&P 500 composite's +5% change. During this period, the Zacks Electronics - Semiconductors industry, which Silicon Motion falls in, has gained 6.9%. The key question now is: What could be the stock's future direction?Al ...

Core Viewpoint - Silicon Motion (SIMO) shares have shown a 1.8% increase over the past four weeks, closing at $75.13, with a mean price target of $94.33 indicating a potential upside of 25.6% [1] Price Targets and Analyst Consensus - The average price target for SIMO is based on nine estimates, ranging from a low of $85 to a high of $110, with a standard deviation of $8.26, suggesting a moderate agreement among analysts [1] - The lowest estimate indicates a 13.1% increase from the current price, while the highest suggests a 46.4% upside [1] - Analysts' price targets can often mislead investors, as they may set overly optimistic targets due to business incentives [3][4] Earnings Estimates and Analyst Optimism - There is strong agreement among analysts regarding SIMO's ability to report better earnings, with three estimates moving higher and one lower in the last 30 days, resulting in a 4.5% increase in the Zacks Consensus Estimate [5] - SIMO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [5] Conclusion on Investment Decisions - While the consensus price target may not be a reliable indicator of potential gains, the direction implied by the price movement appears to be a good guide for investors [5]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Silicon Motion (SIMO) .Silicon Motion currently has an average brokerage r ...

Silicon Motion Technology Corporation (NASDAQ:SIMO) Q1 2024 Earnings Conference Call May 3, 2024 8:00 AM ET Company Participants Wallace Kou - President, Chief Executive Officer Jason Tsai - interim Chief Financial Officer Conference Call Participants Mehdi Hosseini - SIG Quinn Bolton - Needham & Co. Craig Ellis - B. Riley Securities Suji Desilva - Roth MKM Matt Bryson - Wedbush Securities Operator Goo day and thank you for standing by. Welcome to the Silicon Motion Technology Corporation’s first quarter 20 ...

Financial Performance - First quarter 2024 net sales were $189.3 million, a decrease of 6% Q/Q but an increase of 53% Y/Y[4] - Q1 2024 GAAP net income was $16.0 million, or $0.48 per diluted ADS, down from $21.1 million, or $0.63 per diluted ADS in Q4 2023[4][5] - For Q2 2024, management expects revenue between $199 million and $208 million, representing a Q/Q increase of 5% to 10% and a Y/Y increase of 42% to 48%[10] - For the full year 2024, revenue is expected to be between $800 million and $830 million, reflecting a Y/Y increase of 25% to 30%[11] - Q1 2024 gross margin was 45.0%, with an expected range of 45.0% to 46.0% for Q2 2024[10] - Operating margin for Q1 2024 was 9.5%, with an expected range of 15.0% to 16.3% for Q2 2024[10] - Gross profit for the same period was $85,120 thousand, resulting in a gross margin of 45.0%, up from 43.7% in the previous quarter[19] - Operating income for the three months ended March 31, 2024, was $17,950 thousand, with an operating margin of 9.5%[19] - Net income for the period was $16,016 thousand, translating to earnings per diluted ADS of $0.48[19] Sales and Product Performance - SSD controller sales in Q1 2024 increased by 0% to 5% Q/Q and by 35% to 40% Y/Y[3] - eMMC+UFS controller sales in Q1 2024 decreased by 10% to 15% Q/Q but increased by 235% to 240% Y/Y[3] - The company plans to scale new SSD and eMMC+UFS controller programs to improve ASPs and profitability throughout 2024[9] Capital Expenditures and Assets - Capital expenditures in Q1 2024 totaled $10.7 million, including $5.0 million for routine purchases and $5.7 million for building construction[8] - Total current assets increased to $801,838 thousand as of March 31, 2024, compared to $793,245 thousand at the end of the previous quarter[24] - Cash and cash equivalents decreased to $294,814 thousand from $314,302 thousand in the previous quarter[24] - The company reported a net cash provided by operating activities of $7,811 thousand for the three months ended March 31, 2024[27] - Research and development expenses for the period were $54,392 thousand, reflecting ongoing investment in new technologies[19] - The company’s total liabilities decreased slightly to $270,820 thousand as of March 31, 2024, from $273,265 thousand at the end of the previous quarter[24] Market Position and Risks - Silicon Motion continues to lead in supplying NAND flash controllers, indicating strong market positioning and potential for future growth[28] - The company acknowledges potential risks and uncertainties affecting future performance, including unpredictable customer order volumes and economic conditions[29] - Ongoing US-China tariffs and trade disputes may impact the company's business operations and customer relationships[29] - Supply chain disruptions and raw material shortages are currently affecting the industry, which could influence product availability and pricing[31] - The company emphasizes the importance of timely development and introduction of new or enhanced products to maintain competitive advantage[31] - There is a potential for impairment charges related to previously acquired or divested businesses, which could affect financial results[31] - The company does not intend to update or revise forward-looking statements unless required by securities laws, indicating a stable outlook for current projections[31] - The company is focused on monitoring customer sales outlook and purchasing patterns to adjust inventory accordingly[31] - The impact of inflation on both the company and its customers' businesses is a concern that could affect overall economic activity[29] - The company is prepared for potential changes in cash dividend payments at the discretion of its board of directors[29] - The company is closely watching the geopolitical tensions between Taiwan and China, which may have implications for its operations[29]