What happened

Shares of semiconductor company Semtech (NASDAQ:SMTC) shot higher on Thursday, rising as much as 16.2%. By the time the market closed, shares were up 13.9%.

The stock's rise was likely fueled by second-quarter revenue and non-GAAP earnings per share that both topped consensus analyst estimates. The quarter was fueled by record net sales of its LoRa-related products and record channel point-of-sale results.

A chart of a stock price moving higher

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So what

Semtech's net sales in the quarter were $163.2 million, up 7% year over year and 25% sequentially. On average, analysts were expecting sales of $161.2 million. 

Net income was $25.2 million, or $0.37 per share. On a non-GAAP basis, net income was $37.6 million, translating to $0.55 on a per-share basis. This was higher than a consensus analyst forecast for $0.54.

In the company's second-quarter earnings release, CEO Mohan Maheswaran said: "We are pleased to deliver another quarter that exceeded our expectations as we saw healthy growth from the IoT, Mobile, and Data center markets. Our Growth Engines, led by LoRa's global adoption, continue to position the Company well for future growth."

Now what

With record design wins during the quarter of $184 million and strong bookings, Maheswaran said Semtech "entered our third fiscal quarter with record starting backlog."

Management guided for third-quarter net sales to be between $168 million and $178 million, implying a nice sequential uptick compared to Q1. In addition, Semtech forecast non-GAAP EPS to be between $0.58 and $0.64.

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