Please ensure Javascript is enabled for purposes of website accessibility

Why Lattice Semiconductor Stock Surged Wednesday

By Daniel Sparks - Updated Apr 24, 2019 at 11:25AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here's what investors liked about the semiconductor company's fourth-quarter update.

What happened

Shares of Lattice Semiconductor (LSCC 0.40%) jumped on Wednesday, rising as much as 26.2%. As of 10:45 a.m. EST, the stock was up 22.3%.

The sharp gain came in the wake of Lattice's fourth-quarter and full-year results. While the semiconductor company's non-GAAP earnings per share was in line with analysts' average forecast for the metric, fourth-quarter sales and management's first-quarter revenue guidance came in ahead ahead of expectations.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Lattice reported fourth-quarter revenue of $96.0 million, up from $95.3 million in the year-ago quarter. Non-GAAP EPS for the period was $0.08, up from $0.01 last year.

On average, analysts were expecting revenue and non-GAAP EPS of $95.1 million and $0.08, respectively. 

"We are pleased to report that for the full year 2018, we substantially improved Lattice's profitability, earnings per share and operating cash flow," said CEO Jim Anderson in the company's fourth-quarter earnings release. "We simplified the Company's operating structure and have attracted an experienced executive team to lead all critical business areas."

Now what

Looking ahead, management said it expects first-quarter revenue between $94 million and $98 million -- ahead of the consensus analyst estimate for revenue of $93.7 million.

Management believes the company is positioned to benefit from "multiple catalysts in our business" over the long haul. These catalysts include "growth in computing, industrial and automotive, and the global 5G buildout," Anderson said.

Check out the latest earnings call transcripts for companies we cover.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lattice Semiconductor Corporation Stock Quote
Lattice Semiconductor Corporation
$52.22 (0.40%) $0.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.