Lattice Semiconductor (LSCC) Q3 Earnings Report Preview: What To Look For

Adam Hejl /
2023/10/29 3:01 am EDT

Semiconductor designer Lattice Semiconductor (NASDAQ:LSCC) will be announcing earnings results. Here's what to look for.

Last quarter Lattice Semiconductor reported revenues of $190.1 million, up 17.8% year on year, beating analyst revenue expectations by 1.47%. It was a decent quarter for the company, with a significant improvement in its inventory levels. While next quarter's revenue guidance was roughly in line with Consensus expectations, gross margin and non-GAAP operating profit guidance were slightly ahead.

Is Lattice Semiconductor buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Lattice Semiconductor's revenue to grow 11.2% year on year to $191.8 million, slowing down from the 30.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.

Lattice Semiconductor Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.86%.

Looking at Lattice Semiconductor's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Intel's revenues decreased 7.69% year on year, beating analyst estimates by 4.12% and SMART reported revenue decline of 27.7% year on year, missing analyst estimates by 15.6%. Intel traded up 7.2% on the results, SMART was down 23.6%.

Read our full analysis of Intel's results here and SMART's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off since 2022, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 9.39% over the last month. Lattice Semiconductor is down 18.2% during the same time, and is heading into the earnings with analyst price target of $99.4, compared to share price of $70.1.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.