Semtech Corporation's (SMTC) second-quarter fiscal 2025 non-GAAP earnings of 11 cents per share beat the Zacks Consensus Estimate by 10%. The bottom line declined 15.4% year over year. Net sales of $215.4 million surpassed the Zacks Consensus Estimate of $212.42 million. The figure declined 9.6% from the prior-year quarter's levels. However, SMTC provided positive guidance for third-quarter fiscal 2025. At the mid-point, it now expects growth in net sales, gross, operating and adjusted EBITDA margins. This ...

Wall Street analysts expect Semtech (SMTC) to post quarterly earnings of $0.10 per share in its upcoming report, which indicates a year-over-year decline of 9.1%. Revenues are expected to be $212.42 million, down 10.9% from the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 3.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a ...

The period was almost a "throw a dart blindfolded and hit a successful stock" time for semiconductor businesses. A general recovery in semiconductor stocks and a positive analyst note was the one-two combination Semtech (SMTC 7.60%) stock needed to have a good week on the market. The company's share price was almost 19% higher week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence. A change in semi sentiment The mid-summer period was hard on many semiconductor ...

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice. Here's What You May Not Know About Analysts' Price Targets The mean estimate comprises 10 short-term price targets with a standard deviation of $8.35. While the lowest estimate of $30 indicates a 17.4% decline from the current price lev ...

Semtech (SMTC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are ...

Investment Thesis - The company has upgraded its rating from hold to buy due to increased confidence in industry recovery, supported by positive comments from peers and forward-looking booking data [4][9] - The previous concerns regarding elevated inventory impacting near-term growth have been addressed, with expectations of positive sequential growth moving forward [5][9] Financial Performance - Sequential growth decreased from 0.8% in Q2 2024 to 15.7% in Q3 2024 and 4% in Q4 2024, but the worst is believed to be over [5] - The IoT system sales backlog grew by 47% sequentially, with router bookings more than doubling both sequentially and annually, indicating a broad recovery across product families [5][6] - Channel inventories declined by 27% sequentially and 47% annually, suggesting normalization in inventory levels [5] Market Trends - Strong secular tailwinds, particularly from 5G adoption, are expected to drive growth, with significant increases in Module business bookings (22% sequential growth) and LoRa bookings (61% sequential growth) [5][6] - Demand for hyperscale data center applications has more than doubled compared to Q1 2024, driven by generative AI applications [6] Future Outlook - The company anticipates a return to normal business conditions, with expectations of 7% sequential growth for the remainder of FY25 and a total revenue year-over-year growth of 5% [7] - FY25 is expected to be the trough year, with growth acceleration projected for FY26 and FY27, reaching a peak of 15% year-over-year growth [7] - The target price for the company is set at approximately $48, based on FY27 numbers, reflecting increased confidence in long-term growth [7] Risks - The recent change in CEO may raise concerns about potential internal issues, although no changes to corporate strategy are expected [8] - The timing of recovery remains uncertain, particularly in the context of a high interest rate environment that may delay customer purchases [8]

Dublin, June 11, 2024 (GLOBE NEWSWIRE) -- The "Cellular and LPWA IoT Device Ecosystems - 8th Edition" report has been added to ResearchAndMarkets.com's offering. The Internet of Things is weaving a new worldwide web of interconnected objects. By the end of 2023, about 3.8 billion devices were connected to wide area networks based on cellular or LPWA technologies. The market is highly diverse and divided into multiple ecosystems. This research forecasts that annual shipments of cellular and non-3GPP LPWA IoT ...

Core Viewpoint - Semtech's recent earnings report revealed mixed results, with a non-GAAP profit that exceeded expectations but a significant GAAP loss, leading to a reassessment of the company's performance [1][3][5]. Financial Performance - Semtech reported a non-GAAP profit of $0.06 per share, while analysts had predicted no profit [1]. - The company's revenue for Q1 was $206.1 million, surpassing the expected $200.2 million but down 13% from the previous year [1][4]. - The GAAP loss was $0.36 per share, which is an improvement from the $0.46 loss reported a year ago [3][4]. Market Reaction - Following the earnings announcement, Semtech's stock initially surged by 21% but later retreated to a gain of only 0.5% by midday [2]. Future Outlook - Semtech anticipates returning to GAAP profitability in Q2, projecting a profit between $0.06 and $0.12 per share [6]. - Analysts remain skeptical, predicting continued losses for the year and a return to profitability not expected until fiscal 2026 [6]. - The company's current valuation stands at $2.5 billion, with $1.2 billion in net debt, raising concerns about its investment appeal [6].

Semtech Corporation's (SMTC) first-quarter fiscal 2025 non-GAAP earnings of 6 cents per share beat the Zacks Consensus Estimate of the break-even point. The bottom line increased 50% year over year. Net sales of $206.1 million surpassed the Zacks Consensus Estimate of $200.2 million. The figure decreased 12.9% from the prior-year quarter. Nevertheless, growing momentum in the Signal Integrity, and Analog Mixed Signal & Wireless product lines remained a plus. Improving performances in the infrastructure and ...

Core Viewpoint - Semtech Co. has recently experienced a significant stock price breakout, reaching 89% of its 52-week high, driven by positive quarterly earnings and strong market positioning in the AI and IoT sectors [1][2]. Company Performance - Semtech's stock had been stagnant within a $20 to $30 range for two years before the recent earnings report [1]. - The stock price is currently at $42.61, reflecting a 3.48% increase [2]. - Analysts project a price target of $60 per share, indicating a potential upside of 56.6% from current levels [11]. Market Position and Customer Base - Semtech holds an impressive 80% market share in the passive optical network space, showcasing strong adoption rates for its services [9]. - Major clients include Comcast and Apple, which enhances Semtech's credibility as a technology provider [4]. Financial Metrics - The company reported a gross margin of 49.5% in the latest quarter, up from 48.6% over the past year [12]. - Free cash flow improved significantly to $12.2 million in the last quarter, compared to a negative $12.4 million in the previous quarter [18]. Growth Potential - Semtech is expected to achieve an industry-leading EPS growth rate of up to 142% this year, surpassing Nvidia's growth rate of 20.3% [16]. - The company's technology is crucial for AI applications, optimizing data processing and power efficiency for machine learning models [15]. Economic Context - The overall market is influenced by expectations of interest rate cuts, with the Federal Reserve's timeline shifting to September 2024 [5]. - Despite economic challenges, Semtech's growth trajectory appears resilient and independent of interest rate fluctuations [16].