SiTime (SITM) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-t ...

Core Insights - U.S. stocks experienced a decline, with the Dow Jones index dropping over 400 points on Thursday [1] - Datadog, Inc. reported strong third-quarter financial results, exceeding expectations, and raised its guidance for the fourth quarter and FY25 [1][2] Datadog, Inc. - Datadog's quarterly earnings were 55 cents per share, surpassing the analyst consensus estimate of 46 cents per share [2] - The company reported quarterly sales of $885.651 million, exceeding the analyst consensus estimate of $852.781 million [2] - Following the earnings report, Datadog shares surged 20% to $186.13 [2] Other Notable Stocks - Forge Global Holdings, Inc. shares increased by 67.6% to $43.80 after an acquisition agreement with Charles Schwab [4] - Golden Entertainment, Inc. gained 40% to $29.77 following an acquisition announcement at $30 per share [4] - Stagwell Inc. surged 38.2% to $6.65 after reporting better-than-expected third-quarter results and issuing FY25 sales guidance above estimates [4] - SiTime Corporation rose 37.5% to $383.00 after reporting strong quarterly results and receiving a price target increase from Needham [4] - Fastly, Inc. gained 28.3% to $10.35 after raising its full-year earnings and sales guidance [4] - Brighthouse Financial, Inc. increased by 27.3% to $65.94 following an acquisition agreement at $70 per share [4] - Hecla Mining Company rose 26.7% to $15.35 after reporting better-than-expected quarterly results [4] - Haemonetics Corporation gained 24% to $62.87 following positive quarterly results [4] - Forward Air Corporation jumped 23% to $21.75 after third-quarter results [4] - Warrior Met Coal, Inc. gained 21.3% to $80.10 after beating third-quarter earnings and revenue estimates, with a price target increase from BMO Capital [4] - Penumbra, Inc. jumped 20% to $270.56 after reporting strong quarterly results and raising FY25 sales guidance [4] - Coherent Corp. gained 14.3% to $153.84 after better-than-expected first-quarter results and issuing second-quarter sales guidance above estimates [4] - Planet Fitness, Inc. rose 11.4% to $102.16 after beating third-quarter earnings and revenue estimates [4] - Air Products and Chemicals, Inc. gained 10% to $261.19 after reporting better-than-expected quarterly adjusted EPS results and issuing FY26 adjusted EPS guidance above estimates [4] - Snap Inc. rose 10% to $8.03 after reporting better-than-expected third-quarter results [4] - WW International, Inc. gained 9% to $36.19 following third-quarter results [4]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Core Viewpoint - SiTime (SITM) reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and showing significant growth from $0.4 per share a year ago, indicating strong financial performance and positive market sentiment [1][2] Financial Performance - The company achieved revenues of $83.57 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.00% and increasing from $57.7 million year-over-year [2] - SiTime has consistently outperformed consensus EPS estimates over the last four quarters, with an earnings surprise of +22.54% in the latest report and a previous surprise of +62.07% [1][2] Stock Performance - SiTime shares have increased approximately 30.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.1% [3] - The current Zacks Rank for SiTime is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $80.44 million, while the estimate for the current fiscal year is $2.22 on revenues of $288.35 million [7] - The outlook for the Electronics - Miscellaneous Products industry, where SiTime operates, is favorable, ranking in the top 23% of over 250 Zacks industries, suggesting potential for continued performance [8]

SiTime (NasdaqGM:SITM) Q3 2025 Earnings Call November 05, 2025 05:00 PM ET Company ParticipantsQuinn Bolton - Managing Director of Equity ResearchChris Caso - Managing DirectorRajesh Vashist - CEOBrett Perry - VP of Investor RelationsBeth Howe - EVP and CFOConference Call ParticipantsTore Svanberg - Managing Director and Senior Semiconductor AnalystOperatorGood afternoon and welcome to SiTime's third quarter 2025 financial results conference call. After the Speaker's presentation, there will be a question-a ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $83.6 million, representing a 45% year-over-year increase [5][12] - Gross margins improved to 58.8%, up 70 basis points year-over-year [13] - Non-GAAP earnings per share (EPS) more than doubled to $0.87 [14] Business Line Data and Key Metrics Changes - Communications, Enterprise, and Data Center (CED) revenue surged 115% year-over-year to $42.1 million, accounting for 51% of total revenue [12][13] - Sales in the automotive, industrial, and defense markets totaled $20.2 million, up 14% year-over-year [13] - Mobile IoT and consumer market sales increased 4% year-over-year to $21.3 million [13] Market Data and Key Metrics Changes - Double-digit percentage growth was observed in every geographic region during Q3 [6] - Demand from CED, communications, enterprise, and data center customers significantly increased, marking the sixth consecutive quarter of triple-digit growth in CED [6] Company Strategy and Development Direction - The company is focusing on AI-driven applications, particularly in networking and computing hardware [5] - The introduction of the Titan platform aims to capture a $4 billion standalone resonator market, with expectations of growth to $1 billion by 2028 [9][10] - Continued investment in R&D and customer engagement is emphasized to drive sustained growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth momentum, driven by strong bookings and demand across all segments [6][11] - The company anticipates revenue for Q4 to be between $100 million and $103 million, with gross margins projected at 60% to 60.5% [15] Other Important Information - Non-GAAP operating income for Q3 was $15.4 million, an improvement of $11.4 million year-over-year [14] - The company ended the quarter with $810 million in cash and short-term investments [14] Q&A Session Summary Question: What is driving the strength in Q4? - Management noted continuation of trends and sequential growth across segments, with AI and data center business leading the growth [18] Question: How do clocks and resonators impact oscillator opportunities? - Management indicated that while clocks can bring in more oscillator opportunities, significant revenue from resonators is not expected until late 2026 or 2027 [19][20] Question: What is the margin profile of the Titan family? - The ASPs for Titan are lower than oscillators and clocks, but gross margins are expected to be in the 60% range [25][26] Question: Any updates on M&A activities? - The company is interested in M&A to gain scale but is focusing on near-term opportunities rather than long-term atomic clock technologies [27][28] Question: What are the expectations for seasonality in the business? - Management expects to see typical seasonal trends from Q4 to Q1, but strong demand across the portfolio may mitigate some seasonal impacts [52][53]

For the current quarter, SiTime expects to earn an adjusted $1.19 a share on sales of $101.5 million. That's based on the midpoint of its guidance. Analysts had been modeling earnings of 76 cents a share on sales of $82.5 million. In the year-earlier period, SiTime earned 48 cents a share on sales of $68.1 million. "AI growth powered milestone revenue of $83.6 million in the third quarter with increased adoption of our high-performance, resilient and reliable Precision Timing solutions," Chief Executive Raj ...

Revenue Growth - Revenue for the three months ended September 30, 2025, increased by $25.9 million, or 45%, compared to the same period in the prior year, while revenue for the nine months ended September 30, 2025, increased by $78.8 million, or 59%[91] - Revenue growth was primarily driven by increased sales volume and higher average selling prices due to a change in product mix[91] Customer Concentration - Sales from the largest end customer accounted for 18% of revenue for the three months ended September 30, 2025, down from 23% in the same period of 2024[92] - The top three customers by revenue accounted for approximately 58% of revenue for the three months ended September 30, 2025, compared to 55% in the same period of 2024[92] Market and Product Development - The total timing market is estimated to be approximately $10 billion in size, with a focus on providing solutions for complex timing problems[85] - In December 2023, the company acquired clocking products from Aura Semiconductor for approximately $148 million in fixed payments and up to $120 million in earnouts, significantly expanding its presence in the clocking market[86] - The company’s Precision Timing solutions are designed to be resilient to harsh environmental conditions, making them suitable for applications in AI infrastructure, automotive electronics, and industrial markets[83] - The company’s products have been designed into over 300 applications across various markets, including communications, automotive, and IoT[78] Financial Performance - Gross profit increased by $15.3 million, or 52%, for the three months ended September 30, 2025, compared to the same period in the prior year[94] - Gross profit increased by $42.5 million, or 62%, for the nine months ended September 30, 2025, compared to the same period in the prior year[95] - The gross margin was 53.5% for the three months ended September 30, 2025, compared to 51.1% for the same period in the prior year[94] Operating Expenses - Research and development expenses increased by $3.5 million, or 13%, for the three months ended September 30, 2025, primarily due to higher personnel costs[101] - Selling, general and administrative expenses increased by $5.2 million, or 21%, for the three months ended September 30, 2025, primarily due to higher headcount and sales commissions[104] - Total operating expenses increased by $6.4 million, or 12%, for the three months ended September 30, 2025, compared to the same period in the prior year[99] - Acquisition related costs decreased by $2.4 million, or 95%, for the three months ended September 30, 2025, primarily due to lower accretion of acquisition consideration payable[107] Cash Flow and Investments - Cash and cash equivalents increased to $27.1 million as of September 30, 2025, compared to $6.1 million as of December 31, 2024[119] - For the nine months ended September 30, 2025, net cash provided by operating activities was $61.8 million, despite a net loss of $52.1 million, primarily due to non-cash expenses of $112.1 million[126] - Net cash used in investing activities was $406.4 million, with $929.4 million spent on short-term investments and $39.8 million on manufacturing equipment, offset by $562.9 million from maturities of short-term investments[128] - Financing activities included net proceeds of $29.7 million from the sale of shares and $387.3 million from the follow-on public offering, alongside tax withholdings of $41.3 million and earnouts of $9.1 million related to the Aura transaction[129] - The company expects existing cash and cash equivalents and short-term investments to meet operating cash needs for at least the next 12 months, with future capital requirements dependent on growth rate and other factors[124] - As of September 30, 2025, cash and cash equivalents were $27.1 million, with short-term investments in held-to-maturity securities totaling $782.5 million, generating $16.8 million in interest income during the nine months[133] Interest and Market Risk - Interest income increased by $2.8 million, or 50%, for the three months ended September 30, 2025, due to an increase in average investment balance[111] - A hypothetical 10% increase or decrease in market interest rates would change the fair value of interest-earning instruments of $782.5 million by approximately $2.3 million[134] Strategic Initiatives - The company expects to expand its sales and marketing efforts through increased collaboration with distributors and direct online sales[84] - The company expects continued investment in research and development to support future growth and customer acquisition[100] - The company has non-cancelable purchase commitments with contract manufacturers and a multi-year purchase agreement for MEMS wafers, indicating ongoing investment in R&D and production capabilities[122] - The company does not currently have a hedging program for foreign currency exchange risk, with most revenue denominated in U.S. dollars[132]

Exhibit 99.1 SiTime Reports Third Quarter 2025 Financial Results Q3 Net Revenue Increased 45% to $83.6 Million Inducement Plan Grants SiTime granted restricted stock unit awards ("RSUs") on November 3, 2025 that were approved by the Compensation and Talent Committee of its Board of Directors under SiTime's Amended and Restated 2022 Inducement Award Plan, as a material inducement to employment of 19 newly hired individuals globally. The RSUs were approved in accordance with Nasdaq Listing Rule 5635(c)(4). Th ...

Core Insights - SiTime Corporation reported a 45% increase in net revenue for Q3 2025, reaching $83.6 million compared to $57.7 million in Q3 2024 [1][2] - The company anticipates continued growth, projecting to exceed 50% year-over-year growth for 2025, driven by strong demand in its Communications-Enterprise-Datacenter business [2] Financial Performance - GAAP gross profit for Q3 2025 was $44.7 million, representing a gross margin of 53.5% [2][11] - Non-GAAP gross profit was $49.1 million, with a non-GAAP gross margin of 58.8% [3][17] - GAAP operating expenses totaled $60.7 million, leading to a GAAP loss from operations of $16.0 million [2][11] - Non-GAAP income from operations was $15.4 million, with a non-GAAP operating margin of 18.5% [3][17] Cash Position - As of September 30, 2025, the company had total cash, cash equivalents, and short-term investments amounting to $809.6 million [3] Stock Awards - On November 3, 2025, SiTime granted 27,923 restricted stock units (RSUs) to 19 newly hired individuals as part of its Inducement Award Plan [6] Conference Call - SiTime scheduled a conference call to discuss its Q3 2025 financial results on November 5, 2025 [7][8] Company Overview - SiTime Corporation specializes in Precision Timing solutions, offering semiconductor MEMS programmable solutions that enhance product performance, size, power efficiency, and reliability [9]