Overview
Semtech fiscal Q3 net sales grow 13% yr/yr, slightly beating analyst expectations
Adjusted EPS for fiscal Q3 beats analyst expectations
GAAP diluted loss per share improves to $0.03 from $0.10 a year ago
Outlook
Semtech projects Q4 net sales of $273.0 mln +/- $5.0 mln
Adjusted EPS for Q4 expected at $0.43 +/- $0.03
Company anticipates adjusted gross margin of 51.2% +/- 50 bps in Q4
Result Drivers
R&D INVESTMENTS - Returns on disciplined R&D investments and expanding customer partnerships drove strong Q3 results, per CEO Hong Hou
COST OPTIMIZATION - Reduced cash interest costs from capital structure optimization contributed to increased operating and free cash flows
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Beat*
$267 mln
$266.30 mln (12 Analysts)
Q3 Adjusted EPS
Beat
$0.48
$0.44 (13 Analysts)
Q3 EPS
-$0.03
Q3 Adjusted Gross Margin
53.00%
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Semtech Corp is $78.00, about 18.1% above its November 21 closing price of $63.85
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 27 three months ago
Press Release: ID:nBw5C2HGVa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
