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 Offing?
Read MoreHide Full Article
Semtech Corporation (SMTC - Free Report) is set to report third-quarter fiscal 2021 results on Dec 2. In the last reported quarter, the company delivered an average earnings surprise of 2.4%.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings has remained stable at 46 cents per share over the past 30 days. This indicates growth of 12.2% from the year-ago reported figure.
The consensus mark for revenues is pegged at $149.86 million, implying growth of 6.3% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
During the fiscal second quarter, the company reported strong results. The trend is expected to have continued in the to-be-reported quarter due to strength in the Signal Integrity products group, global expansion of cloud and hyperscale data centers, transition to 5G base stations, as well as acceleration of 10 gig PON.
The LoRa business is expected to aid the upcoming results amid the COVID-19 pandemic. As LoRa is ideally suited for applications such as contact tracing, distance tracking, hygiene and health monitoring, as well as occupancy management, growth in the LoRa business remained steady.
During the quarter, Semtech signed a number of deals that are expected to have expanded the adoption of Low power, high Range (LoRa) devices.
In this regard, it is to be noted that its LoRa devices have been deployed by ICT International and Definium on avocado farms to improve yield.
Also, Semtech recently announced that JAM-Labs has integrated Semtech’s BlueRiver technology into its Software Defined Video over Ethernet-enabled integrated operating room products.
In addition, the growing need for more efficient energy management in home and industrial settings, increasing electronic system requirements for mobile devices, along with the propagation of green standards are likely to have spurred demand in these segments, thereby bolstering its quarterly performance.
However, Semtech has been adversely impacted by heightening competition in the semiconductor space, including slowing demand in China.
The resultant pricing pressure might have dampened the company’s margins and profitability in the fiscal third quarter. Moreover, seasonality in the consumer segment may have hampered top-line growth.
Also, geopolitical issues are likely to impact its results.
For the fiscal third quarter, management expects revenues on a non-gap basis in the range of $145-$155 million.
Non-GAAP gross profit margin is expected within 61-62%. Management projects SG&A expenses within $29-$30 million, and research and development costs of $25-$26 million. Non-GAAP earnings per share are projected in the range of 43-49 cents.
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. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Semtech carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and a Zacks Rank #2.
American Outdoor Brands, Inc. (AOUT - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.00%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Semtech (SMTC) to Report Q3 Earnings: What's in the Offing?
Semtech Corporation (SMTC - Free Report) is set to report third-quarter fiscal 2021 results on Dec 2. In the last reported quarter, the company delivered an average earnings surprise of 2.4%.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings has remained stable at 46 cents per share over the past 30 days. This indicates growth of 12.2% from the year-ago reported figure.
The consensus mark for revenues is pegged at $149.86 million, implying growth of 6.3% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Factors at Play
During the fiscal second quarter, the company reported strong results. The trend is expected to have continued in the to-be-reported quarter due to strength in the Signal Integrity products group, global expansion of cloud and hyperscale data centers, transition to 5G base stations, as well as acceleration of 10 gig PON.
The LoRa business is expected to aid the upcoming results amid the COVID-19 pandemic. As LoRa is ideally suited for applications such as contact tracing, distance tracking, hygiene and health monitoring, as well as occupancy management, growth in the LoRa business remained steady.
During the quarter, Semtech signed a number of deals that are expected to have expanded the adoption of Low power, high Range (LoRa) devices.
In this regard, it is to be noted that its LoRa devices have been deployed by ICT International and Definium on avocado farms to improve yield.
Also, Semtech recently announced that JAM-Labs has integrated Semtech’s BlueRiver technology into its Software Defined Video over Ethernet-enabled integrated operating room products.
In addition, the growing need for more efficient energy management in home and industrial settings, increasing electronic system requirements for mobile devices, along with the propagation of green standards are likely to have spurred demand in these segments, thereby bolstering its quarterly performance.
However, Semtech has been adversely impacted by heightening competition in the semiconductor space, including slowing demand in China.
The resultant pricing pressure might have dampened the company’s margins and profitability in the fiscal third quarter. Moreover, seasonality in the consumer segment may have hampered top-line growth.
Also, geopolitical issues are likely to impact its results.
For the fiscal third quarter, management expects revenues on a non-gap basis in the range of $145-$155 million.
Non-GAAP gross profit margin is expected within 61-62%. Management projects SG&A expenses within $29-$30 million, and research and development costs of $25-$26 million. Non-GAAP earnings per share are projected in the range of 43-49 cents.
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. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Semtech carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
RH (RH - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and a Zacks Rank #2.
American Outdoor Brands, Inc. (AOUT - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.00%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>