Semiconductor firm Semtech Q2 sales beat estimates
Overview
Semtech fiscal Q2 net sales rise 20% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 exceeds estimates, per LSEG data
Co reports GAAP operating margin loss due to goodwill impairment
Outlook
Semtech forecasts Q3 net sales at $266 mln +/- $5 mln
Company expects Q3 adjusted EPS of $0.44 +/- $0.03
Semtech anticipates Q3 adjusted operating margin of 19.6% +/- 80 bps
Company projects Q3 adjusted EBITDA of $60 mln +/- $3 mln
Result Drivers
CUSTOMER ENGAGEMENT - Co attributes strong sales growth to deep customer engagement and operational discipline
DEBT REDUCTION - Accelerated debt reduction contributed to improved financial performance and reduced net leverage ratio
GOODWILL IMPAIRMENT - GAAP operating margin loss impacted by goodwill impairment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $257.60 mln | $256.10 mln (12 Analysts) |
Q2 Adjusted EPS | Beat | $0.41 | $0.4 (13 Analysts) |
Q2 EPS | -$0.31 | ||
Q2 Adjusted Gross Margin | 53.2% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Semtech Corp is $57.00, about 10.4% above its August 22 closing price of $51.09
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release:
