SiTime (NASDAQ:SITM) Issues Quarterly Earnings Results, Beats Estimates By $0.30 EPS

SiTime (NASDAQ:SITM) issued its quarterly earnings data on Wednesday. The company reported $1.44 EPS for the quarter, topping analysts’ consensus estimates of $1.14 by $0.30, FiscalAI reports. SiTime had a negative net margin of 6.38% and a positive return on equity of 0.53%. The firm had revenue of $113.57 million for the quarter, compared to analyst estimates of $103.51 million. During the same quarter in the prior year, the firm earned $0.26 EPS. The company’s revenue was up 88.3% on a year-over-year basis.

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

• SiTime reported a strong Q1 with $113.6M revenue (+88% YoY), non?GAAP EPS of $1.44 (?5x YoY), 64.5% gross margin and 28% operating margin, and raised full?year revenue growth to at least 80%; Q2 guide is $140–150M, ~65% gross margin and EPS $1.85–2.00.
• Growth is being led by Communications, Enterprise & Data Center (CED), which grew 158% YoY, driven by AI inference (XPUs), higher timing content in optical modules (including 1.6Tb), switches and CPO, and adoption of the new Elite 2 Super?TCXO that commands higher ASPs and addresses a ~$1.5B cumulative SAM over five years.
• Aerospace & defense and LEO satellite demand is a material catalyst—management cites up to $2,000 of SiTime content per LEO satellite, expects 7k–10k LEO launches in the next 3 years (up to 50k over 10 years), and a ~$0.5B aerospace/defense funnel with conversion rates ~2x other segments targeting ~$100M revenue in coming years.
• The announced Renesas timing?business acquisition remains on track and will add ~150 engineers and product breadth; management says integration costs so far align with prior estimates but the deal is not closed and synergies / expenses could still change.

SiTime Trading Down 0.7%

Shares of SITM stock traded down $5.24 during trading hours on Friday, hitting $792.07. 37,155 shares of the company were exchanged, compared to its average volume of 404,325. SiTime has a 52 week low of $185.49 and a 52 week high of $845.00. The business has a 50 day moving average of $422.53 and a two-hundred day moving average of $370.64. The company has a market capitalization of $20.91 billion, a PE ratio of -783.87 and a beta of 2.91.

Insider Transactions at SiTime

In related news, insider Fariborz Assaderaghi sold 4,984 shares of SiTime stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $406.45, for a total value of $2,025,746.80. Following the sale, the insider owned 89,194 shares of the company’s stock, valued at approximately $36,252,901.30. This trade represents a 5.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Piyush B. Sevalia sold 2,419 shares of the business’s stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $484.05, for a total transaction of $1,170,916.95. Following the sale, the insider directly owned 84,250 shares in the company, valued at $40,781,212.50. This trade represents a 2.79% 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. Over the last quarter, insiders sold 22,678 shares of company stock worth $9,771,269. Company insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SITM. Caitong International Asset Management Co. Ltd bought a new stake in shares of SiTime during the 4th quarter worth about $33,000. Larson Financial Group LLC lifted its position in SiTime by 3,200.0% during the third quarter. Larson Financial Group LLC now owns 99 shares of the company’s stock worth $30,000 after acquiring an additional 96 shares during the last quarter. Sunbelt Securities Inc. acquired a new stake in SiTime during the third quarter worth approximately $71,000. State of Wyoming bought a new stake in shares of SiTime during the second quarter worth approximately $58,000. Finally, Harvest Fund Management Co. Ltd boosted its holdings in shares of SiTime by 418.5% during the third quarter. Harvest Fund Management Co. Ltd now owns 280 shares of the company’s stock worth $84,000 after acquiring an additional 226 shares during the period. 84.31% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on SITM. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SiTime in a research note on Tuesday, April 21st. Needham & Company LLC boosted their price target on shares of SiTime from $450.00 to $850.00 and gave the stock a “buy” rating in a research note on Thursday. The Goldman Sachs Group restated a “buy” rating and issued a $800.00 price objective on shares of SiTime in a report on Thursday. Wall Street Zen lowered shares of SiTime from a “buy” rating to a “hold” rating in a report on Saturday, April 11th. Finally, Stifel Nicolaus upped their target price on shares of SiTime from $450.00 to $500.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Eight equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $661.88.

SiTime News Roundup

Here are the key news stories impacting SiTime this week:

• Positive Sentiment: Q1 results beat expectations — revenue rose ~88% YoY to about $113.6M and GAAP EPS came in ahead of consensus; the company highlighted strong gross margins and improving operating metrics. GlobeNewswire: Q1 Results
• Positive Sentiment: Very strong Q2 guidance — SiTime gave EPS guidance of $1.85–$2.00 and revenue guidance of $140–$150M, well above Street estimates, which supports upside to consensus and signals continued demand strength. Earnings Call Transcript
• Positive Sentiment: Analyst upgrades and higher price targets — UBS raised its target to $775 with a Buy rating and Needham bumped its target to $850, indicating continued analyst conviction after the quarter. UBS PT Raise Needham PT Raise
• Neutral Sentiment: Positive media narratives around AI/data-center and LEO satellite market opportunities are being tied to SiTime’s timing products, which can support longer-term demand but are not immediate revenue confirmations. Barron’s Coverage
• Neutral Sentiment: Earnings call transcript and coverage are available for investors evaluating management’s cadence and bookings commentary; use the transcript to assess sustainability of guidance. Earnings Transcript
• Negative Sentiment: Some immediate profit-taking / share weakness followed the print in after-hours trading and there’s been notable insider selling activity reported over recent months, which can pressure sentiment. QuiverQuant: Stock Reaction & Insider Activity
• Negative Sentiment: Despite strong top-line growth, SiTime remains unprofitable on a net basis (negative net margin) historically, which keeps valuation-sensitive investors cautious even after the beat and upbeat guidance. MarketBeat: Earnings Summary

SiTime Company Profile

SiTime Corporation is a fabless semiconductor company specializing in silicon timing solutions that leverage micro-electromechanical systems (MEMS) technology as an alternative to traditional quartz crystals. Its portfolio of programmable oscillators, resonators, clock generators, jitter attenuators and network synchronizers addresses precision timekeeping requirements across a wide range of electronic systems. By integrating MEMS resonators with advanced mixed-signal control circuitry, SiTime’s products offer enhanced reliability, resistance to shock and vibration, and a smaller footprint compared with conventional quartz devices.

The company’s timing devices serve diverse end markets, including telecommunications infrastructure, data center and enterprise networking, consumer electronics, automotive systems, industrial automation, and aerospace and defense applications.