Semtech Q2 Sales, EPS Beat Estimates; Q3 Guidance Tops Consensus
SMTC has more than doubled off its 52-week low of $50.42 on elevated volume (2.3× avg).
Summary
Semtech reported fiscal Q2 revenue of $341.9M, up 33% year-over-year and above the $328.64M consensus. Adjusted EPS of $0.71 beat the $0.61 estimate. Management cited record sales, margin expansion, and accelerating bookings with record backlog. Q3 guidance of $410M ± $5M in sales and $1.05 ± $0.03 adjusted EPS is well above current consensus. This follows the recent sale of the cellular module business to Compal for $62M, which may be contributing to margin improvement. The stock trades at 37x forward earnings, down from 44x three months ago, suggesting room for multiple expansion if growth continues.
At the time of this announcement, SMTC was trading at $130.74 on NASDAQ in the Technology sector, with a market capitalization of approximately $11.9B. The 52-week trading range was $50.42 to $177.35. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.