Semiconductor firm Semtech Q2 sales beat estimates

Semtech

25/08/2025 21:12

Overview

Semtech fiscal Q2 net sales rise 20% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q2 exceeds estimates, per LSEG data

Co reports GAAP operating margin loss due to goodwill impairment

Outlook

Semtech forecasts Q3 net sales at $266 mln +/- $5 mln

Company expects Q3 adjusted EPS of $0.44 +/- $0.03

Semtech anticipates Q3 adjusted operating margin of 19.6% +/- 80 bps

Company projects Q3 adjusted EBITDA of $60 mln +/- $3 mln

Result Drivers

CUSTOMER ENGAGEMENT - Co attributes strong sales growth to deep customer engagement and operational discipline

DEBT REDUCTION - Accelerated debt reduction contributed to improved financial performance and reduced net leverage ratio

GOODWILL IMPAIRMENT - GAAP operating margin loss impacted by goodwill impairment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$257.60 mln
$256.10 mln (12 Analysts)
Q2 Adjusted EPS
Beat
$0.41
$0.4 (13 Analysts)
Q2 EPS
-$0.31
Q2 Adjusted Gross Margin
53.2%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "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 $57.00, about 10.4% above its August 22 closing price of $51.09

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw1YFQ3qa

(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.)