Semtech Earnings: What To Look For From SMTC

Kayode Omotosho /
2023/09/06 9:39 am EDT

Semiconductor company Semtech (NASDAQ:SMTC) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter Semtech reported revenues of $236.5 million, up 17% year on year, in line with analyst expectations. Earnings outperformed Wall St’s expectations. On the other hand, it was unfortunate to see that the revenue guidance for the next quarter missed analysts' expectations and operating margin deteriorated. Overall, it was a mixed quarter for Semtech.

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

This quarter analysts are expecting Semtech's revenue to grow 13.5% year on year to $237.4 million, in line with the 13.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

Semtech 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 2.09%.

Looking at Semtech's peers in the semiconductor manufacturing segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Lam Research's revenues decreased 30.8% year on year, beating analyst estimates by 1.83%, and Entegris reported revenues up 30.1% year on year, exceeding estimates by 1.6%. Lam Research traded up 2.2% on the results, and Entegris was flat on the results.

Read our full analysis of Lam Research's results here and Entegris's results here.

Investors in the semiconductor manufacturing segment have had steady hands going into the earnings, with the stocks down on average 1.07% over the last month. Semtech is down 1.62% during the same time, and is heading into the earnings with analysts' average price target of $39.0, compared to share price of $26.8.

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