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Silvaco Group Inks Deals With Micron, Key Japanese Customer: Earnings Were '2x Our Forecast,' Analysts Say

Published 21/06/2024, 17:01
© Reuters.  Silvaco Group Inks Deals With Micron, Key Japanese Customer: Earnings Were \'2x Our Forecast,\' Analysts Say
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Benzinga - by Priya Nigam, Benzinga Staff Writer.

Small-cap semiconductor designer Silvaco Group Inc (NASDAQ:SVCO) reported its quarterly earnings on Thursday, June 20, which triggered some volatility in its shares.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Check out other analyst stock ratings.

  • B Riley Securities analyst Craig Ellis maintained a Buy rating, while raising the price target from $26 to $28.
  • Needham analyst Charles Shi reiterated a Buy rating and price target of $28.
B Riley Securities: Silvaco managed to significantly outperform earnings expectations, despite in-line sales, Ellis said in a note. Bookings came in at $16.1 million and revenues at $15.9 million, representing 27.3% growth, he added.

The company reported earnings of 12 cents per share, which was "2x our forecast, helped by stronger-than-expected TCAD and EDA sales," the analyst wrote. The company recorded an "unusually favorable mix," which took gross margins to 87.6%, "helped by FTCO tailwinds, while opex ticked a bit lower to $10.6M," he further stated.

Needham: While the company's first-quarter numbers "largely matched the unaudited results," its second-quarter and full-year guidance exceeded the respective consensus estimates, Shi said.

Silvaco inked a large TCAD and EDA deal with a "key strategic customer" in Japan, the analyst said. The company expects its new FTCO deal with Micron Technology Inc (NASDAQ:MU) to contribute to its second-quarter results.

SVCO Price Action: Shares of Silvaco had declined to $17.53 at the time of publication on Friday.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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