Lattice Semiconductor (LSCC) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2023/07/30 7:16 am EDT

Semiconductor designer Lattice Semiconductor (NASDAQ:LSCC) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter Lattice Semiconductor reported revenues of $184.3 million, up 22.5% year on year, beating analyst revenue expectations by 3.36%. It was a strong quarter for the company, with a significant improvement in its operating margin and a decent beat of analysts' revenue estimates.

Is Lattice Semiconductor buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Lattice Semiconductor's revenue to grow 16% year on year to $187.2 million, slowing down from the 28.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 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 3.26%.

Looking at Lattice Semiconductor's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 17.1% year on year, beating analyst estimates by 2.2% and Sensata Technologies reported revenues up 4.07% year on year, exceeding estimates by 3.47%. SMART traded up 5.38% on the results, and Sensata was flat after reporting. Read our full analysis of SMART's results here and Sensata Technologies's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 2.78% over the last month. Lattice Semiconductor is down 4.35% during the same time, and is heading into the earnings with analysts' average price target of $98.62, compared to share price of $90.95.

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.

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