We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Semtech (SMTC) to Report Q3 Earnings: What's in the Store?
Read MoreHide Full Article
Semtech Corporation (SMTC - Free Report) is scheduled to report third-quarter fiscal 2023 results on Nov 30.
For the fiscal third quarter, SMTC expects net sales between $170 million and $180 million. The Zacks Consensus Estimate for sales is pegged at $176.03 million, indicating a 9.7% decline from the last fiscal year’s quarterly reported figure.
SMTC anticipates non-GAAP earnings per share of 60-66 cents. The consensus mark for the metric is pegged at 64 cents, implying a 13.5% fall from the previous fiscal year’s quarterly reported figure. The bottom line has been unchanged over the past 30 days.
Semtech’s earningssurpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 2.96%.
Semtech’s results for the fiscal third quarter are likely to reflect gains from the low-power, high-range (LoRa) business. Due to the cost-effective nature of the LoRa technology, SMTC has been signing a number of contracts for a while, which are expected to have expanded the adoption of LoRa devices.
During the underlined fiscal quarter, SMTC’s LoRa devices were selected by Kiwi Technology to connect to gas meters for ensuring gas supply and infrastructure safety. Also, Lacuna System picked LoRa devices to use in its drought early warning system for providing clean drinking water to citizens of the remote Pacific islands. The impact of these is likely to get reflected in the upcoming quarterly results.
Increasing demand for its BlueRiver technology is anticipated to have aided SMTC’s performance in the fiscal quarter under review.
In the fiscal third quarter, Semtech expanded its partnership with the global OEM/ODM company ProITAV, wherein its BlueRiver technology is used for ProITAV’s latest OEM-customized AV-over-IP (AVoIP) design. This might have been an upside in the said fiscal quarter.
In addition, the growing momentum of the Tri-Edge short-reach PAM4 platform is expected to have driven data-center bookings in the concerned fiscal quarter, which might have been another positive.
Strength of 4G and 5G-base station deployments might have driven Semtech’s wireless base station business in the fiscal third quarter.
Semtech is witnessing consistent growth in design wins for both ClearEdge and Tri-Edge in 5G-base station front-haul optical modules. This is likely to have continued in the fiscal quarter under review.
Continuous shipment growth in Asia, North America and Europe is anticipated to have driven the top line in the fiscal quarter to be reported.
However, global supply-chain challenges, COVID-related uncertainties in China, and inflation and recession fears are anticipated to have remained headwinds in the fiscal third quarter.
Softness in the consumer end markets is expected to have negatively impacted Semtech’s performance in the fiscal quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Semtech this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Semtech has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Dollar General is set to report third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for DG’s earnings is pegged at $2.55 per share, suggesting a 22.6% increase from the prior-year fiscal period’s reported figure.
BrownForman (BF.B - Free Report) has an Earnings ESP of +3.37% and a Zacks Rank #3 at present.
BrownForman is scheduled to release second-quarter fiscal 2023 results on Dec 7. The Zacks Consensus Estimate for BF.B’s earnings is pegged at 55 cents per share, suggesting an increase of 12.2% from the prior fiscal year’s quarterly reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +12.58% and a Zacks Rank of 3 at present.
Casey is scheduled to release second-quarter fiscal 2023 results on Dec 6. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.10 per share, suggesting an increase of 19.7% from the prior-year fiscal quarter’s reported figure.
Image: Bigstock
Semtech (SMTC) to Report Q3 Earnings: What's in the Store?
Semtech Corporation (SMTC - Free Report) is scheduled to report third-quarter fiscal 2023 results on Nov 30.
For the fiscal third quarter, SMTC expects net sales between $170 million and $180 million. The Zacks Consensus Estimate for sales is pegged at $176.03 million, indicating a 9.7% decline from the last fiscal year’s quarterly reported figure.
SMTC anticipates non-GAAP earnings per share of 60-66 cents. The consensus mark for the metric is pegged at 64 cents, implying a 13.5% fall from the previous fiscal year’s quarterly reported figure. The bottom line has been unchanged over the past 30 days.
Semtech’s earningssurpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 2.96%.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Key Factors to Note
Semtech’s results for the fiscal third quarter are likely to reflect gains from the low-power, high-range (LoRa) business. Due to the cost-effective nature of the LoRa technology, SMTC has been signing a number of contracts for a while, which are expected to have expanded the adoption of LoRa devices.
During the underlined fiscal quarter, SMTC’s LoRa devices were selected by Kiwi Technology to connect to gas meters for ensuring gas supply and infrastructure safety. Also, Lacuna System picked LoRa devices to use in its drought early warning system for providing clean drinking water to citizens of the remote Pacific islands. The impact of these is likely to get reflected in the upcoming quarterly results.
Increasing demand for its BlueRiver technology is anticipated to have aided SMTC’s performance in the fiscal quarter under review.
In the fiscal third quarter, Semtech expanded its partnership with the global OEM/ODM company ProITAV, wherein its BlueRiver technology is used for ProITAV’s latest OEM-customized AV-over-IP (AVoIP) design. This might have been an upside in the said fiscal quarter.
In addition, the growing momentum of the Tri-Edge short-reach PAM4 platform is expected to have driven data-center bookings in the concerned fiscal quarter, which might have been another positive.
Strength of 4G and 5G-base station deployments might have driven Semtech’s wireless base station business in the fiscal third quarter.
Semtech is witnessing consistent growth in design wins for both ClearEdge and Tri-Edge in 5G-base station front-haul optical modules. This is likely to have continued in the fiscal quarter under review.
Continuous shipment growth in Asia, North America and Europe is anticipated to have driven the top line in the fiscal quarter to be reported.
However, global supply-chain challenges, COVID-related uncertainties in China, and inflation and recession fears are anticipated to have remained headwinds in the fiscal third quarter.
Softness in the consumer end markets is expected to have negatively impacted Semtech’s performance in the fiscal quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Semtech this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Semtech has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Dollar General (DG - Free Report) has an Earnings ESP of +1.58% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General is set to report third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for DG’s earnings is pegged at $2.55 per share, suggesting a 22.6% increase from the prior-year fiscal period’s reported figure.
BrownForman (BF.B - Free Report) has an Earnings ESP of +3.37% and a Zacks Rank #3 at present.
BrownForman is scheduled to release second-quarter fiscal 2023 results on Dec 7. The Zacks Consensus Estimate for BF.B’s earnings is pegged at 55 cents per share, suggesting an increase of 12.2% from the prior fiscal year’s quarterly reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +12.58% and a Zacks Rank of 3 at present.
Casey is scheduled to release second-quarter fiscal 2023 results on Dec 6. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.10 per share, suggesting an increase of 19.7% from the prior-year fiscal quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.