Semtech (NASDAQ:SMTC) Issues Earnings Results

Semtech (NASDAQ:SMTC) announced its quarterly earnings results on Tuesday. The semiconductor company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.45 by $0.06, FiscalAI reports. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The company had revenue of $291.00 million for the quarter, compared to the consensus estimate of $283.53 million. During the same quarter last year, the company posted $0.38 earnings per share. The company’s revenue for the quarter was up 15.9% compared to the same quarter last year. Semtech updated its Q2 2027 guidance to 0.590-0.630 EPS.

Here are the key takeaways from Semtech’s conference call:

• Semtech reported record quarterly revenue of $291 million, up 6% sequentially and 16% year over year, with adjusted EPS of $0.51 up 34% year over year. Management called it an “exceptional start” to fiscal 2027 and the ninth straight quarter of net sales growth.
• Data center momentum remained the main growth driver, with Q1 revenue of $71.6 million and management guiding 35% sequential growth in Q2. The company highlighted strong demand for 800G FiberEdge, initial 1.6T shipments, and expanding wins across hyperscalers and module makers.
• LoRa is seeing a renewed growth cycle, with Q1 LoRa-enabled sales up 12% sequentially and management targeting more than 15% sequential growth in Q2. Semtech said edge AI, smart utilities, smart buildings, and other new use cases are broadening the opportunity set.
• CopperEdge / ACC is gaining traction, with Q1 shipments beginning to a U.S. hyperscaler and more design wins expected in onboard and active backplane applications. Management said capacity is being expanded aggressively and that customer interest in the MSA could further accelerate adoption.
• Gross margins and profitability improved, with adjusted gross margin at 53% and adjusted operating margin at 20.4% in Q1. For Q2, Semtech guided to $328 million in revenue and $0.61 adjusted EPS, implying continued margin expansion and earnings growth.

Semtech Trading Up 4.9%

Semtech stock opened at $164.46 on Wednesday. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.66 and a current ratio of 2.37. The business’s 50-day simple moving average is $104.05 and its 200-day simple moving average is $87.58. The firm has a market capitalization of $15.31 billion, a PE ratio of -373.77 and a beta of 2.22. Semtech has a 52 week low of $34.59 and a 52 week high of $168.29.

Insider Activity

In related news, EVP Jason Elliot Green sold 7,500 shares of the business’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $81.73, for a total transaction of $612,975.00. Following the transaction, the executive vice president directly owned 8,811 shares in the company, valued at $720,123.03. The trade was a 45.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Mark Lin sold 9,186 shares of the business’s stock in a transaction dated Tuesday, March 24th. The shares were sold at an average price of $75.05, for a total value of $689,409.30. Following the transaction, the chief financial officer owned 32,710 shares in the company, valued at $2,454,885.50. This represents a 21.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 36,884 shares of company stock valued at $3,069,245. Corporate insiders own 0.48% of the company’s stock.

Hedge Funds Weigh In On Semtech

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Captrust Financial Advisors increased its stake in Semtech by 0.8% during the fourth quarter. Captrust Financial Advisors now owns 19,302 shares of the semiconductor company’s stock valued at $1,422,000 after acquiring an additional 162 shares during the period. Cetera Investment Advisers increased its stake in Semtech by 1.5% during the fourth quarter. Cetera Investment Advisers now owns 11,737 shares of the semiconductor company’s stock valued at $865,000 after acquiring an additional 177 shares during the period. Smartleaf Asset Management LLC increased its stake in Semtech by 24.1% during the second quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock valued at $57,000 after acquiring an additional 247 shares during the period. State of Wyoming increased its stake in Semtech by 19.3% during the fourth quarter. State of Wyoming now owns 1,524 shares of the semiconductor company’s stock valued at $112,000 after acquiring an additional 247 shares during the period. Finally, CHICAGO TRUST Co NA increased its stake in Semtech by 8.4% during the fourth quarter. CHICAGO TRUST Co NA now owns 3,227 shares of the semiconductor company’s stock valued at $238,000 after acquiring an additional 249 shares during the period.

Trending Headlines about Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech delivered a beat-and-raise quarter, with Q1 earnings and revenue both above estimates and Q2 guidance well above expectations. Semtech Announces First Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Management pointed to faster data center growth, driven by 800G FiberEdge and 1.6T ramps, which supports a stronger second-half outlook. SMTC Q1 Earnings Call Flags Faster Data Center Growth
• Positive Sentiment: UBS and Baird both reiterated bullish ratings and raised their price targets to $225, signaling rising confidence in the company’s optical and data center momentum. Semtech Price Target Raised to $225…
• Neutral Sentiment: Northland Securities downgraded the stock to market perform, which partially offsets the otherwise positive post-earnings analyst tone.

Wall Street Analysts Forecast Growth

SMTC has been the topic of several research analyst reports. Weiss Ratings downgraded Semtech from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Tuesday, March 24th. B. Riley Financial reiterated a “buy” rating on shares of Semtech in a research note on Tuesday, May 12th. Robert W. Baird lifted their price objective on Semtech from $88.00 to $110.00 and gave the stock an “outperform” rating in a research note on Tuesday, March 17th. Craig Hallum lifted their price objective on Semtech from $80.00 to $105.00 and gave the stock a “buy” rating in a research note on Tuesday, March 17th. Finally, TD Cowen reiterated a “buy” rating on shares of Semtech in a research note on Tuesday, February 24th. Thirteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $118.50.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.