Why Semtech Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Semtech have popped today by as much as 12% after the company reported earnings.
So what: Revenue in the fourth quarter was $150.6 million, an increase of 45% from a year ago, and squeezing past the Street forecast of $149.1 million in sales. Non-GAAP earnings per share was $0.49, a healthy beat relative to the $0.43 per share profit that analysts were modeling for.
Now what: The semiconductor supplier also provided strong outlook for the first quarter, with sales expected to be in the range of $154 million to $162 million. Adjusted gross margin should be right around 61%, and adjusted earnings per share should be $0.43 to $0.49. CEO Mohan Maheswaran said the past year was pivotal for the company, because it integrated its largest acquisition in history and generated record revenue.
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The article Why Semtech Shares Popped originally appeared on Fool.com.Fool contributor Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.