Semtech (SMTC) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - Semtech (SMTC) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results having a significant impact on its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for release on November 24, and better-than-expected key numbers could lead to a stock price increase, while a miss could result in a decline [2]. - The Zacks Consensus Estimate predicts quarterly earnings of $0.44 per share, reflecting a year-over-year increase of +69.2%, with revenues expected to reach $266.65 million, up 12.6% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4]. - The Most Accurate Estimate for Semtech is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.29%, suggesting a bullish outlook from analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [9]. - Semtech currently holds a Zacks Rank of 2, enhancing the likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Semtech was expected to post earnings of $0.40 per share but delivered $0.41, resulting in a surprise of +2.50% [12]. - Over the past four quarters, Semtech has beaten consensus EPS estimates three times [13]. Conclusion - Semtech is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [16].