SiTime (NASDAQ:SITM) Posts Quarterly Earnings Results, Beats Expectations By $0.39 EPS

SiTime (NASDAQ:SITM) posted its quarterly earnings data on Wednesday. The company reported $4.01 earnings per share for the quarter, beating the consensus estimate of $3.62 by $0.39, FiscalAI reports. SiTime had a net margin of 3.01% and a return on equity of 4.99%. The firm had revenue of $298.67 million for the quarter, compared to analysts’ expectations of $292.65 million.

Here are the key takeaways from SiTime’s conference call:

• Record growth and strong outlook: Q3 revenue was $298.7 million, up 257% year over year, with 70.7% gross margin, 43% operating margin and non-GAAP EPS of $4.01. SiTime forecast Q4 revenue of $331 million–$341 million and EPS of about $4.76 at the midpoint.
• AI data-center demand is expanding opportunities: Core communications, enterprise and data-center revenue grew 202%, while optical architectures—including XPO, coherent optics, NPO and CPO—are creating opportunities for higher timing content and higher-value products. Management said the total design-win funnel reached $10 billion, and the semiconductor-company funnel grew eightfold to more than $4 billion, though much of the latter is expected to ramp in 2028–2029.
• Renesas timing acquisition is showing early cross-selling benefits: The acquired TPD business generated $86.3 million in Q3 revenue, up 67% year over year, and management reported that combined offerings are already creating opportunities in both companies’ customer bases. SiTime said its 2027 revenue forecast at its largest accounts has increased two to five times, largely reflecting design-win potential.
• Supply constraints and investment needs remain: Wafer supply constraints, particularly for TPD, are expected to persist through 2027, although management expects the most severe issues to ease around early 2027. The company also expects operating expenses to rise sequentially through 2027 as it builds out infrastructure and supports growth.

SiTime Trading Down 9.4%

Shares of SITM traded down $41.61 during trading hours on Wednesday, hitting $403.27. The company had a trading volume of 1,373,613 shares, compared to its average volume of 485,551. The firm has a market cap of $12.13 billion, a P/E ratio of 823.00 and a beta of 2.88. The stock’s 50 day moving average price is $574.53 and its 200 day moving average price is $545.83. The company has a quick ratio of 18.50, a current ratio of 19.44 and a debt-to-equity ratio of 1.29. SiTime has a 52-week low of $243.68 and a 52-week high of $901.81.

Insider Activity at SiTime

In other SiTime news, Director Katherine Schuelke sold 500 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $698.05, for a total value of $349,025.00. Following the completion of the sale, the director owned 12,010 shares in the company, valued at approximately $8,383,580.50. The trade was a 4.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Fariborz Assaderaghi sold 1,374 shares of SiTime stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $701.05, for a total transaction of $963,242.70. Following the completion of the transaction, the insider directly owned 66,861 shares in the company, valued at approximately $46,872,904.05. The trade was a 2.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 15,924 shares of company stock worth $10,056,661 over the last three months. Corporate insiders own 1.40% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Benchmark assumed coverage on SiTime in a research note on Wednesday, August 19th. They issued a “buy” rating and a $850.00 target price on the stock. UBS Group upped their price objective on SiTime from $775.00 to $840.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Zacks Research lowered SiTime from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Wall Street Zen upgraded SiTime from a “hold” rating to a “buy” rating in a research report on Saturday, October 17th. Finally, Morgan Stanley began coverage on SiTime in a report on Thursday, September 17th. They set an “overweight” rating and a $370.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $736.00.

About SiTime

SiTime Corporation (NASDAQ: SITM) develops and supplies precision timing solutions for electronic systems. Its products are designed to generate, distribute and maintain accurate timing signals, which help connected devices and infrastructure operate reliably and efficiently.

The company’s portfolio includes silicon MEMS-based resonators and oscillators, clock generators, clock synchronizers, jitter attenuators and other timing components. These products are used in applications such as data centers, telecommunications and networking equipment, automotive systems, industrial machinery, aerospace and defense electronics, and consumer devices.

SiTime’s technology is intended to address demanding requirements for frequency stability, signal integrity, power efficiency and resilience in challenging operating environments.