Investing.com -- Synaptics reported fiscal third-quarter results that topped Wall Street estimates, but it slashed its annual outlook amid an economic slowdown that is putting margins under pressure.
Synaptics Incorporated (NASDAQ:SYNA) fell more than 11% in afterhours following the report.
Synaptics reported EPS of $1.89 on revenue of $3.36 million, topping estimates of $1.86 on revenue of $3.25M.
The beat on the top and bottom lines, however, was overshadowed by gloomy guidance as slowing economic growth weighs on guidance.
“Customer forecasts are being moderated in response to the current economic slowdown, the company said, adding that customers are still working through excess inventories.
"As a result, we expect our June quarter revenue to decline sequentially, and we have begun to implement spending," the company warned.
Looking ahead, the company cut its outlook on revenue to a range of $210M to $240M from $310M to $240M previously, while gross margin was also slashed to 44%-47% form 52%-55% previously.