What happened
Connectivity tech company Semtech (SMTC -3.12%) really connected with investors on Thursday. They bid its share price up by almost 5%, on a day when the S&P 500 index bumped a comparatively modest 0.6% higher. The stock's rise was due nearly entirely to its latest set of quarterly earnings.
So what
Semtech unveiled its fiscal 2024 first-quarter results after market hours on Wednesday. These showed that the company's net sales amounted to $236.5 million, a robust 17% higher year over year. That topped the average analyst estimate of just over $235 million.
Meanwhile, Semtech surprised on the bottom line. Its adjusted net income was $1.5 million, or $0.02 per share. While that was far down from the nearly $52 million the company netted in the year-ago quarter, it trounced the collective analyst expectation of a $0.08 per share loss.
In the earnings release, Semtech said it was witnessing evidence of "business stabilization," which helped improve its results. The company quoted CEO Mohan Maheswaran as saying, "As we continue to navigate this challenging macro-economic environment, we are taking steps to improve our operational efficiency and financial performance while focusing on executing our plans."
This quarter almost certainly will be Maheswaran's swan song at the company; at the end of May, it announced that it has appointed a new CEO, Paul Pickle, who is to begin his tenure at some point later this month.
Now what
Semtech proffered guidance for its current second quarter. The company believes its net sales will come in at $233 million to $243 million, with the bottom line ranging from a $0.02 per share loss to a $0.06 per share profit on an adjusted basis.
