Chipmaker Silicon Laboratories Inc raised its outlook for the third quarter, citing better-than-expected demand for both its broadcast audio and microcontroller unit (MCU) products.
The company now expects to earn 60 cents to 62 cents a share, excluding stock-compensation expenses, up from its previous outlook of 48 cents to 53 cents a share.
For the quarter, it expects revenue of $123 million to $126 million, up from its prior view of $114 million to $119 million.
Analysts on average expect third-quarter earnings of 49 cents a share, excluding special items, on revenue of $116.5 million, according to Reuters Estimates.
The strength in the broadcast audio business was a result of better-than-seasonal demand in handsets at the company's largest customer which is expected to moderate in the fourth quarter, Silicon Laboratories said.
The company said a faster-than-expected ramp at a new consumer audio customer also helped the business.
Silicon Laboratories, which expects further improvement in gross margin in the third quarter, counts Huawei, LG Electronics and Motorola Inc amongst its customers.
Shares of the Austin, Texas-based company closed at $47.96 Tuesday on Nasdaq. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Vinu Pilakkott)