Semtech Misses Where it Counts
Semtech (NAS: SMTC) reported earnings on May 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 29 (Q1), Semtech met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Semtech booked revenue of $116.6 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $115.7 million on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $122.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The six earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.03 for Q1 were 91% lower than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.4%, 1,300 basis points worse than the prior-year quarter. Operating margin was -16.4%, 3,810 basis points worse than the prior-year quarter. Net margin was 1.9%, 1,660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $150.3 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $590.6 million. The average EPS estimate is $1.68.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 89 members out of 99 rating the stock outperform, and 10 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Semtech a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Semtech is outperform, with an average price target of $34.00.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.