The 10-second takeaway
For the quarter ended Jan. 27 (Q4), Semtech met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded.
Gross margins expanded, operating margins shrank, net margins contracted.
Semtech booked revenue of $150.6 million. The seven analysts polled by S&P Capital IQ looked for a top line of $149.1 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $104.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The eight earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. Non-GAAP EPS of $0.49 for Q4 were 53% higher than the prior-year quarter's $0.32 per share. GAAP EPS of $0.19 for Q4 were 5.6% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.4%, 100 basis points better than the prior-year quarter. Operating margin was 8.3%, 50 basis points worse than the prior-year quarter. Net margin was 8.7%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $157.3 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $684.8 million. The average EPS estimate is $2.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members out of 103 rating the stock outperform, and 11 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 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 buy, with an average price target of $32.50.
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