Why Did Lattice Semiconductor Stock Plunge On Tuesday?

Core Viewpoint - Lattice Semiconductor reported its first-quarter results, showing a mixed performance with earnings meeting expectations but revenue declining year-over-year, leading to a drop in stock price. Financial Performance - The company reported quarterly earnings of 22 cents per share, aligning with analyst consensus estimates [1] - Quarterly revenue was $120.15 million, down from$140.81 million year-over-year, but slightly beating the analyst consensus estimate of $120.13 million [1] - For the second quarter, adjusted earnings are expected to be between 22 cents and 26 cents per share, with revenue projected at$118.5 million to $128.5 million [1] Analyst Ratings - Following the quarterly report, Rosenblatt analyst Kevin Garrigan maintained a Buy rating on Lattice Semiconductor with a price forecast of$72 [2] Market Dynamics - Growth in Industrial & Automotive and Consumer end-markets contributed to a sequential revenue increase, while Communications & Computing saw a slight decline [3] - The adjusted gross margin was 69%, which is an increase of 700 basis points quarter-over-quarter but flat year-over-year, slightly below the consensus estimate of 70.1% [3] Management Insights - The company continues to ship below true demand in the near term but is encouraged by improvements in bookings and a decrease in channel inventory [4] - Management does not foresee any material impact from tariffs, although they are cautious about potential effects in the second half of 2025 [4] - Approximately 80% of Lattice's revenue comes from outside the US, supported by a diversified global supply chain [4] Future Outlook - Management anticipates continued recoveries in Industrial & Automotive markets and growth in Communications & Computing [5] - Garrigan projects second-quarter revenue of $123.5 million and earnings per share of$0.24 [5] - The stock closed lower by 12.7% at $45.82 following the earnings report [5]