CAMARILLO, Calif. - Semtech (NASDAQ:SMTC) Corporation (NASDAQ:SMTC (NASDAQ:SMTX)) shares jumped 9.4% after the semiconductor company reported better-than-expected third quarter results and provided an upbeat forecast for the current quarter.
The company posted adjusted earnings of $0.26 per share for the third quarter, beating analyst estimates of $0.23 per share. Revenue came in at $236.8 million, surpassing the consensus forecast of $232.89 million and rising 10% sequentially.
Semtech's data center business was particularly strong, with net sales surging 58% quarter-over-quarter to a record $43.1 million. Overall gross margin expanded to 52.4% on a non-GAAP basis, up 200 basis points from the previous quarter.
For the fourth quarter, Semtech expects adjusted earnings per share between $0.29 and $0.35, above the $0.27 consensus. The company forecasts revenue in the range of $245 million to $255 million, also ahead of analysts' $242.2 million estimate.
"We are very pleased to report broad-based growth across each of our end markets, and particularly in data center, where we project AI-driven product demand to be a long-term and transformational growth engine for Semtech," said CEO Hong Hou.
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