Semtech (SMTC) Q4 Earnings: What To Expect
Semiconductor company Semtech (NASDAQ:SMTC) will be reporting results tomorrow after market hours. Here's what to look for.
Last quarter Semtech reported revenues of $200.9 million, up 13.1% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Is Semtech buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Semtech's revenue to grow 13.9% year on year to $190.7 million, improving on the 12.1% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.9%.
Looking at Semtech's peers in the semiconductor manufacturing segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Marvell Technology delivered top-line growth of 0.6% year on year, beating analyst estimates by 0.2% and Photronics reported revenues up 2.5% year on year, missing analyst estimates by 1.7%. Marvell Technology traded down 11.2% on the results, and Photronics was flat on the results.
Read our full analysis of Marvell Technology's results here and Photronics's results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 4.5% over the last month. Semtech is up 25.1% during the same time, and is heading into the earnings with analyst price target of $31.9, compared to share price of $25.45.
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