Semiconductor company Semtech (NASDAQ: SMTC) will be reporting results this Monday afternoon. Here’s what to expect.
Semtech beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $257.6 million, up 19.6% year on year. It was a mixed quarter for the company, with EPS in line with analysts’ estimates but an increase in its inventory levels.
Is Semtech a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Semtech’s revenue to grow 12.6% year on year to $266.6 million, slowing from the 17.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Semtech has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at Semtech’s peers in the semiconductor manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.3%, beating analysts’ expectations by 3.3%, and Kulicke and Soffa reported a revenue decline of 2.1%, topping estimates by 4.4%. Teradyne traded up 19.8% following the results while Kulicke and Soffa was also up 10.6%.
Read our full analysis of Teradyne’s results here and Kulicke and Soffa’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the semiconductor manufacturing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 9.5% on average over the last month. Semtech is down 5.3% during the same time and is heading into earnings with an average analyst price target of $73.64 (compared to the current share price of $64.20).
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