Semtech (SMTC) to Report Q1 Earnings: What's in the Cards?
Semtech Corporation SMTC is scheduled to report first-quarter fiscal 2023 results on Jun 1.
For the fiscal first quarter, SMTC expects net sales of $195-$205 million. The Zacks Consensus Estimate for sales is pegged at $199.8 million, indicating an improvement of 17.3% from the last fiscal year’s quarterly reported figure.
SMTC anticipates non-GAAP earnings per share of 72-80 cents. The consensus mark for the same is pegged at 60 cents, indicating a 43.4% rise from the previous fiscal year’s quarterly reported figure. The consensus mark has been unchanged in the past 30 days.
Semtech’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 9.81%.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Key Factors to Note
Semtech’s fiscal first quarter is likely to have performed well on the growing adoption of low power, high range (LoRa) devices.
During the underlined quarter, SMTC’s LoRa devices and LoRaWAN standard were integrated by ICT International into its water quality monitoring systems for aquaculture.
Semtech collaborated with Australia-based Smart Paddock, wherein the latter incorporated SMTC’s LoRa devices and LoRaWAN standard into its Bluebell smart GPS ear tag for monitoring livestock location in real-time and analyzing cattle’s behavioral data to solve livestock management issues.
This apart, SMTC added multi-band features to the LoRa Edge device-to-Cloud geolocation platform, LoRa Edge, to focus on the challenges faced by the logistics industry.
These initiatives are expected to have supported Semtech’s performance in the to-be-reported quarter.
In the fiscal first quarter, Semtech announced that Lightware integrated its AVXT technology into its TPX devices for use in classrooms, auditoriums and conference rooms. This is anticipated to have aided the quarterly performance.
Additionally, growing momentum of 10-gig PON, 5G wireless and broad-based industrial protection platforms is expected to have contributed well to SMTC’s to-be-reported quarter’s performance.
Further, increasing demand for its BlueRiver technology is expected to have aided SMTC’s performance in the quarter under review.
In the same period, the BlueRiver technology was incorporated into Jam Lab’s surgical displays to provide better quality video to surgeons working in the operating rooms. Therefore, this addition is likely to have been a positive in the fiscal first quarter.
In addition, growing momentum of the Tri-Edge short-reach PAM4 platform is expected to have driven data center bookings in the concerned quarter, which might have been a tailwind.
Yet, global supply-chain challenges are anticipated to have affected Semtechin the fiscal first quarter. Uncertainties related to the coronavirus pandemic are also likely to have been concerning.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Semtech has an Earnings ESP of 0.00% and 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 season.
Commercial Metals CMC has an Earnings ESP of +8.63% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals is scheduled to release third-quarter fiscal 2022 results on Jun 16. The Zacks Consensus Estimate for CMC’s earnings is pegged at $1.97 per share.
Veeva Systems VEEV has an Earnings ESP of +1.64% and a Zacks Rank #2 at present.
Veeva Systems is scheduled to release first-quarter fiscal 2023 results on Jun 1. The Zacks Consensus Estimate for VEEV’s earnings is pegged at 61 cents per share.
Torrid Holdings CURV currently has a Zacks Rank #2 and an Earnings ESP of +10.00%.
Torrid Holdings is set to release first-quarter fiscal 2022 results on Jun 7. The Zacks Consensus Estimate for CURV’s earnings is pegged at 20 cents per share.
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