Silicon Motion's Stock Surges After Revenue Outlook Raised

Shares of Silicon Motion Technology Corp. jumped 7.1% in premarket trade Friday, after the Taiwan-based memory chip company raised its sales outlook for the third quarter. The company now expects revenue to rise 11% to 13% from the sequential second quarter, compared with a previous outlook of flat to 5% growth. Based on reported second-quarter revenue of $140.7 million, the revised outlook implies revenue of $156.2 million to $159.0 million, above the FactSet consensus of $143.8 million. Gross margin for the quarter is now expected to be 48% to 49%, above the previous outlook of 46% to 48%. The stock has rocketed 64% year to date through Thursday, while the PHLX Semiconductor Index has climbed 26% and the S&P 500 has gained 5.7%.