SiTime Corp (SITM) shares plummeted 5.49% in pre-market trading on Thursday, as the semiconductor company's weak first-quarter guidance and lack of significant new growth drivers disappointed investors.
In its Q4 2024 earnings call, SiTime reported solid results with 61% year-over-year revenue growth and strong profitability. However, the company provided underwhelming guidance for the first quarter of 2025, projecting revenue of $53 million to $55 million, up 64% year-over-year but representing a significant sequential decline from the previous quarter.
Additionally, SiTime's forecast for gross margins of around 57% in Q1 2025 fell short of expectations, as the company cited lower manufacturing absorption due to seasonality and higher costs associated with ramping new products. In Q4 2024, SiTime achieved a gross margin of 58.8%.