The 10-second takeaway
For the quarter ended April 28 (Q1), Semtech beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Semtech reported revenue of $162.4 million. The eight analysts polled by S&P Capital IQ expected to see sales of $158.6 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $116.6 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 $0.46. The nine earnings estimates compiled by S&P Capital IQ forecast $0.46 per share. Non-GAAP EPS of $0.46 for Q1 were 70% higher than the prior-year quarter's $0.27 per share. GAAP EPS of $0.22 for Q1 were much higher than the prior-year quarter's $0.03 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 59.9%, 140 basis points better than the prior-year quarter. Operating margin was 12.4%, 180 basis points better than the prior-year quarter. Net margin was 9.1%, 720 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $167.8 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $689.4 million. The average EPS estimate is $2.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 91 members out of 102 rating the stock outperform, and 11 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 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 $38.00.
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