Silicon Motion Technology Corporation (NASDAQ:SIMO) announced preliminary results for Q3, lifting its quarterly revenue guidance to slightly exceed the high end of the company's original forecast, which ranges from $238 million to $249 million. The company expects Gross Margins to be above 50% and at the high end of the original guide of 48.5% - 50.5%.

Analysts at Wedbush provided a quick note on the preliminary results, mentioning that the company's revised outlook fits with the strength just reported by Phison and their view that Chinese handset demand is good, while corporate PC demand is strong with shipments constrained by manufacturers' ability to ship parts.

Wedbush reiterated its outperform rating and $100 price target on the company’s shares.