Semtech (SMTC) to Release Q3 Earnings: What's in the Cards?
Semtech Corporation SMTC is scheduled to report third-quarter fiscal 2024 results on Dec 6.
For the fiscal third quarter, SMTC expects net sales between $190 million and $210 million. The Zacks Consensus Estimate for sales is pegged at $200.93 million, indicating 13.12% growth from the prior-year quarter's reported figure.
SMTC anticipates a non-GAAP-based loss in the band of 22-9 cents per share. The consensus mark for the same is pegged at a loss of 15 cents per share. The company reported earnings of 65 cents per share in the year-ago quarter.
Semtech’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 144.9%.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Key Factors to Note
Semtech’s fiscal third-quarter results are likely to have benefited from growing momentum in the industrial end-market.
Strength in 4G and 5G base station deployments might have driven Semtech’s wireless base station business in the to-be-reported quarter.
Solid momentum in the IoT System product line might have continued contributing well to the company's top line.
Rising demand for smart and enhanced carrier connectivity might have been a tailwind for the company.
This apart, increasing pipeline engagements and improving broadband module business might have been other positives.
The rising demand for LoRa devices and LoRaWAN standards is expected to have been an advantage.
However, macroeconomic challenges, weakness in China and growing recession fears are anticipated to have posed headwinds in the fiscal third quarter.
Softness in the consumer and infrastructure end markets is expected to have negatively impacted Semtech’s performance in the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Semtech this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below.
Semtech has an Earnings ESP of -10.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SMTC has a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Core & Main CNM has an Earnings ESP of +3.86% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Core & Main is set to announce third-quarter fiscal 2023 results on Dec 5. CNM shares have risen 84.3% year to date.
Aldeyra Therapeutics ALDX has an Earnings ESP of +23.71% and a Zacks Rank #2 at present.
Aldeyra Therapeutics is set to announce third-quarter fiscal 2023 results on Dec 7. ALDX shares have lost 60.2% year to date.
Campbell Soup CPB has an Earnings ESP of +0.07% and a Zacks Rank #3 at present.
Campbell Soup is set to announce first-quarter fiscal 2024 results on Dec 6. CPB shares have lost 26.3% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Semtech Corporation (SMTC) : Free Stock Analysis Report
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Core & Main, Inc. (CNM) : Free Stock Analysis Report
