What To Expect From Semtech's (SMTC) Q1 Earnings

Anthony Lee /
2024/06/04 3:00 am EDT

Semiconductor company Semtech (NASDAQ:SMTC) will be reporting earnings tomorrow after the bell. Here's what investors should know.

Semtech beat analysts' revenue expectations by 1.2% last quarter, reporting revenues of $192.9 million, up 15.2% year on year. It was a good quarter for the company. Next quarter's revenue, gross margin, and adjusted EBITDA guidance all came in higher than Wall Street's estimates.

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

This quarter, analysts are expecting Semtech's revenue to decline 15.4% year on year to $200.1 million, a reversal from the 17% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 per share.

Semtech Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Semtech has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2% on average.

Looking at Semtech's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lam Research's revenues decreased 2% year on year, beating analysts' expectations by 1.7%, and Amkor reported a revenue decline of 7.2%, in line with consensus estimates. Lam Research traded up 1.9% following the results while Amkor was also up 2.5%.

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

There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 3.9% on average over the last month. Semtech is down 2.6% during the same time and is heading into earnings with an average analyst price target of $44.1 (compared to the current share price of $38.67).

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