Semtech (SMTC) to Report Q2 Earnings: What's in the Cards?
Semtech Corporation SMTC is scheduled to report second-quarter fiscal 2024 results on Sep 7.
For the fiscal second quarter, SMTC expects net sales between $233 million and $243 million. The Zacks Consensus Estimate for sales is pegged at $237.06 million, indicating 13.3% growth from the last fiscal year’s quarterly figure.
SMTC anticipates a non-GAAP-based bottom line in the band of $0.02-$0.06 per share. The consensus mark for the metric is pegged at a gain of 2 cents per share. The company reported earnings of 87 cents per share in the year-ago quarter. The bottom-line estimate has remained unchanged over the past 30 days.
Semtech’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average being 33%.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Factors to Consider
Semtech’s results for the fiscal second quarter are likely to reflect gains from the low-power, high-range (LoRa) business.
An increasing demand for its BlueRiver technology is anticipated to have aided SMTC’s performance in the fiscal quarter under review.
The growing momentum of the Tri-Edge short-reach PAM4 platform is expected to have driven data-center bookings in the concerned fiscal quarter, which might have been another positive.
Strength in 4G and 5G base station deployments might have driven Semtech’s wireless base station business in the fiscal second quarter.
Growing design wins for both ClearEdge and Tri-Edge in 5G base station front-haul optical modules are likely to have contributed well to the upcoming results.
Consistent strength in Semtech’s 10-gig and 2.5-gig PON platforms is likely to have propelled the PON business in the fiscal second quarter.
However, macro headwinds and rising inflationary pressure are anticipated to have remained headwinds in the fiscal second quarter.
Softness in the consumer end markets is expected to have negatively impacted Semtech’s performance in the fiscal 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 0.00%. 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 season.
Bowlero BOWL has an Earnings ESP of +211.12% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bowlero is scheduled to release fourth-quarter fiscal 2023 results on Sep 11. The Zacks Consensus Estimate for BOWL’s earnings per share is pegged at a penny.
Casey’s General Stores CASY has an Earnings ESP of +1.29% and currently carries a Zacks Rank #3.
Casey’s is set to report first-quarter fiscal 2024 results on Sep 11. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.36 per share.
Darden Restaurants DRI has an Earnings ESP of +0.72% and a Zacks Rank #2 at present.
Darden Restaurants is expected to report first-quarter fiscal 2024 results on Sep 21. The Zacks Consensus Estimate for DRI’s earnings is pegged at $1.72 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Semtech Corporation (SMTC) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Bowlero Corp. (BOWL) : Free Stock Analysis Report
