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Semtech (SMTC) Reports Q1: Everything You Need To Know Ahead Of Earnings


Radek Strnad /
2023/06/06 7:23 am EDT

Semiconductor company Semtech (NASDAQ:SMTC) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter Semtech reported revenues of $167.5 million, down 12.1% year on year, beating analyst revenue expectations by 10.6%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a decline in operating margin.

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 16.2% year on year to $235 million, slowing down from the 18.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 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 2.19%.

Looking at Semtech's peers in the semiconductor manufacturing segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Kulicke and Soffa's revenues decreased 55% year on year, beating analyst estimates by 1.17% and Teradyne reported revenue decline of 18.2% year on year, exceeding estimates by 2.4%. Kulicke and Soffa traded up 1.87% on the results, Teradyne was up 8.46%. Read our full analysis of Kulicke and Soffa's results here and Teradyne's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 12.4% over the last month. Semtech is up 17.7% during the same time, and is heading into the earnings with with analyst price target of $39.6, compared to share price of $22.09.

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.