Standard Microsystems rallied up $2.65, or 15 percent, to $20 Monday after the chipmaker topped analysts’ estimates in its third quarter.
Standard Microsystems (Nasdaq: SMSC) posted a profit of $2.2 million, or 13 cents a share, on sales of $46.9 million.
Analysts surveyed by First Call Corp. predicted it would earn 11 cents a share in the quarter.
“We are pleased with our third quarter results,” said CEO Steven Bilodeau in a prepared release. “Our market position and operating excellence have continued to result in revenue and gross margin growth, enabling us to maintain profitability while accelerating investments in our future through research and development.”
In the quarter, gross profit margins improved to 41.4 percent, up from 40.4 percent in the year-ago period.
The $46.9 million in sales represents a 9 percent jump from the year-ago quarter when it pocketed $2 million, or 13 cents a share, on sales of $43.1 million.
Company officials told investors to expects fourth-quarter sales slightly below the $46.9 million it recorded this quarter but up slightly from the fourth quarter of fiscal 2000.
“We are comfortable with our inventory position and that of our distributors and believe that we are well positioned to serve our markets when the seasonal upturn that we expect occurs,” Bilodeau said.
Analysts expect Standard Microsystems to post a profit of 5 cents a share in the fourth quarter and $1.33 a share in the fiscal year.
The stock moved as high as $27.88 in November after bottoming out at $10.63 last December.
The lone analyst following the stock rates it a “hold.”