Group 1 - Semtech Corporation is set to release its first-quarter earnings results on May 27, with analysts expecting earnings of 37 cents per share, a significant increase from 6 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $250.09 million, up from $206.1 million a year earlier [1] - On May 12, Semtech announced the appointment of Mitch Haws as the senior vice president of investor relations [2] Group 2 - Semtech shares experienced a decline of 1.4%, closing at $37.28 [2] - Stifel analyst Tore Svanberg maintained a Buy rating and raised the price target from $35 to $42 [7] - UBS analyst Timothy Arcuri maintained a Buy rating but reduced the price target from $60 to $55 [7] - Morgan Stanley analyst Joseph Moore initiated coverage with an Equal-Weight rating and a price target of $30 [7] - Benchmark analyst Cody Acree maintained a Buy rating and lowered the price target from $82 to $68 [7] - Needham analyst Quinn Bolton reiterated a Buy rating with a price target of $54 [7]

Core Viewpoint - Semtech Corp (NASDAQ:SMTC) is anticipated to report first-quarter earnings soon, with bearish sentiment surrounding the stock, which has a history of significant post-earnings price movements [1]. Group 1: Earnings Expectations - Semtech is set to report earnings after the market closes on May 27, with the options market indicating a larger-than-usual post-earnings swing of 14.3% [2]. - The stock has previously experienced notable post-earnings moves, including a 21.5% increase after the March report and an 18.1% rise following the November earnings report [2]. Group 2: Stock Performance - The current trading price of Semtech is $38.05, having rebounded from a 12-month low of $24.05 recorded on April 21 [3]. - Year-to-date, the shares have declined by 38.4%, and the 80-day moving average is identified as a critical pivot point for future performance [3]. Group 3: Short Interest and Volatility - Short interest in Semtech has decreased by 10% in the last two reporting periods, yet 6.63 million shares sold short still represent 7.7% of the total available float [5]. - The Schaeffer's Volatility Scorecard (SVS) for Semtech is at 89 out of 100, indicating that the stock has surpassed option traders' volatility expectations over the past year [5].

Core Viewpoint - Semtech Corporation (SMTC) is expected to report strong financial results for the first quarter of fiscal 2026, with significant year-over-year growth in both net sales and earnings per share. Financial Performance - Semtech anticipates net sales of $250 million (+/- $5 million), reflecting a 21% year-over-year growth, with the Zacks Consensus Estimate for revenues at $249.79 million, indicating a rise of 21.20% from the previous year [1][2] - The company expects non-GAAP earnings per share to be 37 cents (+/- 3 cents), while the consensus mark is at 38 cents, showing a robust year-over-year improvement of 533% [2] Market Drivers - The fiscal first-quarter performance is likely to benefit from strength in infrastructure and high-end consumer markets, with strong growth in the wireless end-market attributed to increasing 5G offerings [3] - Continued growth in FiberEdge and Tri-Edge products, especially for 400G/800G modules, is expected to boost revenue [3] - Strong momentum in Signal Integrity and Analog Mixed Signal & Wireless product lines is anticipated to contribute positively, alongside the growing adoption of artificial intelligence [4] - Increased demand for LoRa devices and LoRaWAN standards is expected to positively impact top-line growth, particularly with new product offerings targeting smaller-scale network deployments [5] Challenges - Macroeconomic challenges, including prolonged inflation and high interest rates, may pose difficulties for the company [6] - Delayed adoption of CopperEdge products due to architectural changes in server racks could negatively affect results [6] - Escalating tensions between the United States and China, along with softness in the industrial end-market and Connectivity segment, are expected to be significant negatives [7]

Wall Street analysts expect Semtech (SMTC) to post quarterly earnings of $0.38 per share in its upcoming report, which indicates a year-over-year increase of 533.3%. Revenues are expected to be $249.79 million, up 21.2% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a company's earnings disclosure, it is cru ...

Core Viewpoint - Semtech Corporation is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims that the company's CopperEdge products did not meet customer needs, leading to lower-than-expected sales [1][3][4] Company Overview - Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms, including its CopperEdge product line [2] Allegations of the Lawsuit - The lawsuit claims that during the class period, Semtech made false or misleading statements regarding its CopperEdge products, which did not meet the requirements of server rack customers [3] - It is alleged that the CopperEdge products necessitated changes in rack architecture, which would hinder sales growth during fiscal 2026 [3][4] - On February 7, 2025, Semtech disclosed that sales of CopperEdge products would be lower than the previously estimated floor case of $50 million, resulting in a 31% drop in stock price [4] Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows investors who purchased Semtech securities during the class period to seek appointment as lead plaintiff, representing the interests of the class [5] - The lead plaintiff has the authority to select a law firm for litigation and does not need to be the lead plaintiff to share in any potential recovery [5] Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud cases, having recovered $6.6 billion for investors in class action cases, significantly more than any other firm in recent years [6]

Core Viewpoint - Semtech has shown signs of recovery after a significant stock drop, with recent financial results exceeding expectations and a potential rebound in its stock price [2][11]. Financial Performance - Semtech reported adjusted earnings per share (EPS) of $0.40, which is 25% higher than the expected $0.32, and sales of $251 million, slightly above the forecast [3]. - The company's adjusted EPS guidance for the next quarter is nearly 9% higher than expected at the midpoint [4]. - Fiscal 2025 saw a 5% growth in full-year sales, with Q4 growth accelerating to nearly 30% year-over-year [5]. - Adjusted gross margin increased by 430 basis points and adjusted operating margin rose by over 1000 basis points in Q4 [5]. - Sales of LoRa-enabled solutions grew by 205%, and sales to data centers in the infrastructure segment increased by 183% [6]. Debt Management - Semtech has significantly improved its balance sheet by reducing overall debt by 68% since the end of the previous year, providing more financial flexibility for future investments [6][12]. Product Development and Partnerships - The company faced challenges with its CopperEdge products due to a reduced partnership with NVIDIA, which initially led to a stock sell-off [7]. - Despite the setback, Semtech is in discussions with over 20 potential customers for its CopperEdge products, indicating ongoing interest in its technology [8]. - The CopperEdge technology enhances signal integrity for active copper cables, allowing for longer and more flexible connectivity in data centers [9]. - Demand from NVIDIA for CopperEdge is expected to lag for the next three to four quarters, but the company anticipates future orders as NVIDIA incorporates the technology into its server designs [10]. Market Outlook - Analysts have set a 12-month stock price forecast for Semtech at $61.55, indicating a potential upside of 47.91% from the current price [11]. - The company is viewed as having significant opportunities for recovery, although the timeline for a full rebound remains uncertain [12].

Financial Data and Key Metrics Changes - For Q4, the company recorded net sales of $251 million, up 6% sequentially and up 33% year over year [39][41] - Adjusted gross margin was 53.2%, up 80 basis points sequentially and up 430 basis points year over year [40] - Adjusted operating income was $49.8 million, resulting in an adjusted operating margin of 19.9%, up 160 basis points sequentially and up 1070 basis points year over year [40] - Adjusted diluted earnings per share increased to 40 cents, up from 26 cents in Q3 and up from a loss of 6 cents in Q4 of the previous year [41][42] - Net debt was reduced to $411 million, a decrease of 68% from $1.3 billion at the end of FY 2024 [42][43] Business Line Data and Key Metrics Changes - Infrastructure net sales for Q4 were $69.1 million, up 5% sequentially and up 75% year over year [16] - Data center net sales reached a record $50 million, up 16% sequentially and up 183% year over year [16] - High-end consumer net sales for Q4 were $35.4 million, up 10% year over year, with FY 2025 net sales at $147 million, up 17% year over year [22][25] - Industrial net sales for Q4 were $146.6 million, up 12% sequentially and up 21% year over year, with LoRa-enabled solutions recording Q4 net sales of $37.1 million, up 28% sequentially and up 205% year over year [27][28] Market Data and Key Metrics Changes - The company expects net sales from the infrastructure end market to increase sequentially, with data center applications leading growth [44] - The high-end consumer end market is expected to see slight increases reflective of seasonality, while the industrial end market is anticipated to decline due to seasonality in the IoT portfolio [45] Company Strategy and Development Direction - The company is focused on three core priorities: portfolio optimization and simplification, strategic investment in R&D, and driving margin expansion through operational leverage and AI [11][15] - The company aims to enhance profitability through portfolio optimization and leveraging AI for efficiency [15] - The company is prioritizing divestitures of non-core assets to improve balance sheet strength and operational focus [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, citing strong fundamentals and a favorable market environment [65] - The company anticipates continued growth in the data center segment despite temporary headwinds from the Copper Edge portfolio [70] - Management highlighted the importance of customer engagement and innovation in driving future growth [102] Other Important Information - The company achieved a significant milestone with the 5G Redcap certification in collaboration with AT&T and Qualcomm, positioning it for scalable solutions across industries [36] - The company is actively engaged with over 20 potential customers for its CopperEdge portfolio, indicating a strong interest in new applications [58] Q&A Session Summary Question: Can you expand on the Copper Edge portfolio and its future? - Management indicated that revenue for Copper Edge is expected to be below $50 million in FY 2026, with ongoing engagement with over 20 customers for various applications [56][58] Question: What is the outlook for the core business and growth visibility? - Management expressed confidence in the core business's growth trajectory, with expectations for continued sequential growth across various segments [62][65] Question: Can you provide timing on the upcoming revenue step change in the data center? - Management noted that while there may be temporary bumps in the Copper Edge segment, overall data center growth is expected to continue [70] Question: How is the company approaching portfolio rationalization? - Management stated that they are patient in their approach to rationalization, focusing on strategic synergies rather than distressed sales [76] Question: What is the outlook for LoRa and its recent growth? - Management attributed the strong growth in LoRa to customer focus and new product development, with expectations for continued year-over-year growth [102][156]

Group 1 - Magnachip reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of a loss of $0.22 per share, and compared to a loss of $0.21 per share a year ago, representing an earnings surprise of 131.82% [1] - The company posted revenues of $63.04 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.34%, and compared to year-ago revenues of $50.82 million [2] - Over the last four quarters, Magnachip has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock's immediate price movement will depend on management's commentary on the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the coming quarter is -$0.32 on $56.5 million in revenues, and for the current fiscal year, it is -$1 on $252.65 million in revenues [7] - The Zacks Industry Rank for Semiconductor - Analog and Mixed is currently in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Group 3 - The estimate revisions trend for Magnachip is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Another industry player, Semtech, is expected to report quarterly earnings of $0.32 per share, reflecting a year-over-year change of +633.3%, with revenues expected to be $247.91 million, up 28.5% from the year-ago quarter [9][10]

Wall Street expects a year-over-year increase in earnings on higher revenues when Semtech (SMTC) reports results for the quarter ended January 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on March 13, 2025, might help the stock move higher if these key numbers are better than expecta ...

Core Insights - Nvidia reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and up from $0.52 per share a year ago [1] - The company achieved revenues of $39.33 billion for the quarter, surpassing the Zacks Consensus Estimate by 4.26%, compared to $22.1 billion in the same quarter last year [3] Earnings Performance - The earnings surprise for the quarter was 5.95%, following a previous surprise of 8% in the last quarter [2] - Nvidia has consistently surpassed consensus EPS estimates over the last four quarters [2] Revenue Performance - The company has also topped consensus revenue estimates four times in the last four quarters [3] Stock Performance - Nvidia shares have declined approximately 5.7% since the beginning of the year, while the S&P 500 has gained 1.3% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.90, with expected revenues of $41.06 billion, and for the current fiscal year, the estimate is $4.22 on $188.81 billion in revenues [8] - The Zacks Rank for Nvidia is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Industry Context - The Semiconductor - General industry, to which Nvidia belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [9]