Why SiTime Shares Are Falling Today
Semiconductor manufacturer SiTime (NASDAQ: SITM) delivered a quarter that met analyst expectations, but the company walked back its previous forecast for oversize growth in 2022. Investors were not pleased, sending SiTime shares down more than 35% on Thursday morning.
SiTime makes digital timing devices, offering more precision and greater durability than the quartz-based products that have been used for the last century. Its an obscure but surprisingly important niche: Timing devices are needed in a range of electronics products and other goods, including automobiles, cellular towers, and data centers.
On Wednesday evening, SiTime reported second-quarter earnings of $1.11 per share on revenue of $79.4 million, in line with to slightly ahead of estimates. But the company also warned that it now believes it has been too optimistic when talking about full-year growth.
Source Fool.com
