Semtech (SMTC) Q2 Earnings Report Preview: What To Look For
Semiconductor company Semtech (NASDAQ:SMTC) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Semtech beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $206.1 million, down 12.9% year on year. It was a solid quarter for the company, with a significant improvement in its inventory levels.
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 11% year on year to $212.3 million, a reversal from the 13.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
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 2.2% on average.
Looking at Semtech’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Nova delivered year-on-year revenue growth of 27.8%, beating analysts’ expectations by 5.9%, and FormFactor reported revenues up 26.7%, topping estimates by 1.3%. Nova traded up 24.4% following the results while FormFactor was down 11.8%.
Read our full analysis of Nova’s results here and FormFactor’s results here.
Investors in the semiconductor manufacturing segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. Semtech is up 16.8% during the same time and is heading into earnings with an average analyst price target of $51.8 (compared to the current share price of $36.96).
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