Semtech (Nasdaq: SMTC) reported earnings on Aug. 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 29 (Q2), Semtech met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Revenue details
Semtech reported revenue of $150.7 million. The six analysts polled by S&P Capital IQ hoped for a top line of $150.0 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $130.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.41. The eight earnings estimates compiled by S&P Capital IQ forecast $0.41 per share. GAAP EPS of $0.15 for Q2 were 63% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 49.5%, 1,090 basis points worse than the prior-year quarter. Operating margin was 1.8%, 2,270 basis points worse than the prior-year quarter. Net margin was 6.7%, 1,410 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $157.4 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $582.5 million. The average EPS estimate is $1.63.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 88 members out of 98 rating the stock outperform, and 10 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Semtech a green thumbs-up, and two give 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 $32.86.
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