Synaptics Shareholders' 185% Growth Despite Recent Market Cap Dip

Despite a 12% share price drop in the last quarter, Synaptics (NASDAQ:SYNA) shareholders have enjoyed an impressive 185% return over five years, with the company's earnings per share growing at 5.7% annually. However, recent losses of $151 million in market cap and a 44% drop in the past three years indicate mixed performance. The stock's TSR of 1.1% over the past year lags behind the market, but its long-term TSR of 23% highlights better growth.

Synaptics Incorporated (NASDAQ:SYNA), a leading provider of human interface solutions, experienced a 12% share price decrease in the last quarter, although shareholders have enjoyed an impressive 185% return over the past five years [1]. The company's earnings per share (EPS) have grown at a rate of 5.7% annually [2]. Despite these positive figures, Synaptics lost $151 million in market capitalization in the past three years, and its stock's total shareholder return (TSR) over the past year lagged behind the market at 1.1% [2].

Synaptics' financial results for the third quarter of fiscal 2024, ended March 30, 2024, showcased mixed performance. The company reported revenue of $237.3 million and GAAP net loss of $18.1 million, translating to a loss of $0.46 per basic share [2]. However, Synaptics' non-GAAP net income reached $21.0 million, or $0.53 per diluted share [2]. Michael Hurlston, Synaptics' President and CEO, highlighted the company's achievements in its strategic Core IoT product area, with a successful launch of its Astra™ platform targeting a $20 billion plus market opportunity for embedded edge AI processors for the Internet of Things (IoT) [2].

Despite the recent challenges, Synaptics' long-term TSR of 23% indicates better growth potential [1]. The company is optimistic about its business outlook, anticipating a moderate increase in revenue for the fourth quarter of fiscal year 2024 [2]. However, the recovery is progressing slower than anticipated, and the company is dealing with supply chain inventory and improving demand conditions [2].

Sources:

[1] Yahoo Finance. Synaptics Incorporated (SYNA). https://ca.finance.yahoo.com/news/synaptics-incorporated-syna-fell-despite-131104894.html
[2] Synaptics Incorporated. Synaptics Reports Third Quarter Fiscal 2024 Results. https://investor.synaptics.com/news-releases/news-release-details/synaptics-reports-third-quarter-fiscal-2024-results