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.
Updates
· Binance News — Management says AI optical demand is so strong that availability, not price, is the constraint, and all current-year orders are locked in. It expects 1.6T FiberEdge TIA and driver market share to exceed 50% by year-end, with certification ahead of schedule. Next fiscal year order coverage is already over 70%, and existing capacity may fall short in the second half of fiscal 2028.
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.