Earnings To Watch: Semtech (SMTC) Reports Q2 Results Tomorrow
Semiconductor company Semtech (NASDAQ:SMTC) will be announcing earnings results this Tuesday afternoon. Here’s what you need to know.
Semtech beat analysts’ revenue expectations last quarter, reporting revenues of $291 million, up 15.9% year on year. It was a stunning quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
Is Semtech a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Semtech’s revenue to grow 27.7% year on year, improving from the 19.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Semtech has a history of exceeding Wall Street’s expectations.
Looking at Semtech’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kulicke and Soffa delivered year-on-year revenue growth of 123%, beating analysts’ expectations by 5.7%, and FormFactor reported revenues up 31.9%, topping estimates by 7.6%. Kulicke and Soffa traded down 3.4% following the results while FormFactor was up 26.3%.
Read our full analysis of Kulicke and Soffa’s results here and FormFactor’s results here.
Investors in the semiconductor manufacturing segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Semtech is up 2.8% during the same time and is heading into earnings with an average analyst price target of $201.38 (compared to the current share price of $124.75).
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