Semtech Corp. (NASDAQ:SMTC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.51%.
Semtech Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 26.83% to $0.52 in the quarter versus EPS of $0.41 in the year-earlier quarter.
Revenue: Rose 9.5% to $165.01 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Semtech Corp. reported adjusted EPS income of $0.52 per share. By that measure, the company beat the mean analyst estimate of $0.51. It missed the average revenue estimate of $165.02 million.
Quoting Management: Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated, “Semtech delivered solid second quarter results with record revenue and gross margin. We also expanded operating margin, grew net income and continued to see strong design win activity. We expect our Q3 results to be negatively impacted by both a reduction in demand and inventory corrections at several of our largest smartphone customers. We anticipate that this weakness will continue through most of the second half. However, we remain confident in our ability to manage through any short term demand fluctuations as we head towards our $1 billion revenue goal.”
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