Semtech Shares Popped: What You Need to Know

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: Semtech (Nasdaq: SMTC  ) popped 12% in intraday trading today after delivering better than expected earnings and guidance.

So what: Non-GAAP EPS of $0.47 beat the consensus estimate of $0.41 and was up 57% from the year-ago quarter, helped by revenue growth of 36%. Management expects non-GAAP EPS for the current quarter of $0.41 to $0.44, compared to $0.35 in the year-earlier quarter and a consensus estimate of $0.40.

Now what: Non-GAAP EPS jumped up over the past year to $1.71, after ranging from $0.61 to $0.90 over the prior six years. Guidance and positive management comments about the outlook suggest Semtech will build on last year's improvement. Though guidance indicates non-GAAP EPS growth is expected to slow to 17% to 26% in the current quarter, the stock is trading at a non-GAAP P/E of 13.1 times and GAAP P/E of 22.5 times.

Interested in more info on Semtech? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson does not own shares of any company named above. 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.


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