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SMTC Slides On Earnings

Published 08/31/2017, 10:44 AM
Updated 03/09/2019, 08:30 AM
SMTC
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Shares of California-based analog and mixed-signal semiconductors supplier Semtech Corporation (NASDAQ:SMTC) slumped 13% slid by almost 13% during Wednesday’s extended trading session after the company posted a missed-revenue report and outlook for the coming quarter. The company’s revenue numbers missed Wall Street forecasts sending its shares to as low as $35.15 during the after-hours trading.

The company is known for the manufacturing and production of high-performance analog and mixed-signal semiconductor platforms and advanced algorithms. Semtech also produces processors that are used in low-power wireless communications, optical data transport, video broadcasting, circuit protection, touch sensing, and power management as well as many other applications.

Although the company posted considerably higher numbers for the second quarter, it still missed most estimates. Semtech posted a revenue 12.7% higher to $153.13 million compared to last year’s revenue of $135.91 million for the same quarter.

Despite posting upbeat numbers, analysts expected earnings of $0.49 per share on a revenue of $160.5 million.

Semtech earnings came at $0.48 per share which is 37% higher on a year over year basis on an adjusted sales of $156.3 million which is up by 15%.

Semtech chief executive officer Mohan Maheswaran stated in a news release that the company is delighted with the continuous progress of their main growth engines driven by the company’s LoRa initiatives in the market of Internet of Things along with their ClearEdge 100 Gbps platforms in the cloud and hyperscale data center market. Maheswaran also stated that their Z-platforms have progressed in the high performance mobile market.

For the current quarter, the company is forecasting earnings of $0.50 per share which is 35% on a revenue of 156 million while its net sales are expected to come at around $145 million to $153 million. This is higher than most analyst estimates of $0.49 earnings per share and a revenue of $159.9 million.

Semtech shares have jumped by 24% this year.

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