Semtech (SMTC) Surpasses Q3 Earnings and Revenue Estimates

Core Insights - Semtech (SMTC) reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, and showing a significant increase from $0.26 per share a year ago, resulting in an earnings surprise of +9.09% [1] - The company achieved revenues of $267 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.13% and increasing from $236.8 million year-over-year [2] - Semtech has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Earnings Outlook - The sustainability of Semtech's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $263.51 million, while for the current fiscal year, the estimate is $1.66 on revenues of $1.04 billion [7] Industry Context - The Semiconductor - Analog and Mixed industry, to which Semtech belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]