Lattice Semiconductor (LSCC) Q3 Earnings Report Preview: What To Look For

Semiconductor designer Lattice Semiconductor (NASDAQ:LSCC) will be announcing earnings results tomorrow after market hours. Here’s what to look for.

Lattice Semiconductor missed analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $124.1 million, down 34.7% year on year. It was a disappointing quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

Is Lattice Semiconductor a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Lattice Semiconductor’s revenue to decline 33.9% year on year to $127.1 million, a reversal from the 11.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 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. Lattice Semiconductor has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Lattice Semiconductor’s peers in the processors and graphics chips segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AMD delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 1.6%, and Qorvo reported a revenue decline of 5.2%, topping estimates by 1.8%. AMD traded down 10.6% following the results while Qorvo was also down 27.4%.

Read our full analysis of AMD’s results here and Qorvo’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. 2024 has been a different story as mixed signals have led to market volatility, and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share prices down 4.6% on average over the last month. Lattice Semiconductor’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $60.79 (compared to the current share price of $52.28).

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