Semiconductor designer Lattice Semiconductor (NASDAQ: LSCC) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Lattice Semiconductor beat analysts’ revenue expectations last quarter, reporting revenues of $170.9 million, up 42.2% 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 Lattice Semiconductor 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 Lattice Semiconductor’s revenue to grow 49.4% year on year, improving from its flat revenue 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. Lattice Semiconductor has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Lattice Semiconductor’s peers in the processors and graphics chips segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.7%, and Penguin Solutions reported revenues up 47.6%, topping estimates by 17.5%. Intel traded down 7.9% following the results while Penguin Solutions was up 25.1%.
Read our full analysis of Intel’s results here and Penguin Solutions’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the processors and graphics chips stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 12.7% on average over the last month. Lattice Semiconductor is down 10.4% during the same time and is heading into earnings with an average analyst price target of $148.33 (compared to the current share price of $122).
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