SILC – Silicom Limited (Nasdaq) – (Closing Price – $13.92)
Silicom Limited announced fourth quarter results today and reported increases in revenue and EPS. The share price responded with a gain over 17%.
Silicom reported revenue of 7.48 million which was a 13% improvement over last quarter and a 49% improvement over the comparable quarter last year. EPS came in at $0.27 which was also an improvement sequentially ($0.25) and YOY ($0.20).
Even with today’s gain of 17% Silicom Limited is trading at a trailing PE of 14. That is very cheap considering the growth Silicom Limited has experienced over the last couple of years. The WAN optimization sector is projected to show strong growth for the next few years which will benefit Silicom Limited in future quarters.
The stock price of Silicom Limited is trading very near my initial recommendation and I still think the company is a good buying opportunity. I would recommend that you continue to hold your shares or even accumulate some more.
Disclaimer: I have no position in SILC.