Synaptics Stock: Back to Attractive Price

On July 31, investors saw Synaptics stock price (SYNA) lose roughly a third of its value after the company reported earnings for its fourth quarter ending June 30. The company actually posted strong earnings of 47 cents per share which was 57% higher than the fourth quarter of fiscal 2008. However, as management issued guidance for the upcoming first quarter, analysts were very disappointed with the outlook.

Management told investors to expect revenue to fall in the range of $113 to 119 million which is relatively even with the first quarter last year, and significantly below analyst expectations of $127 million. For the full year, the picture actually looks better with management guiding for revenue of $495 to $525 million compared with 2009 revenue of $473.3 million. However, it appears that investors have a very short time horizon and are only willing to consider the most current quarter in their pricing of the stock.