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SMTC Set to Report Q2 Earnings: What's in the Cards for the Stock?

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Key Takeaways

  • Semtech expects Q2 revenues of $256M, up 18.9% year over year, with EPS of 40 cents.
  • Strength across infrastructure, wireless, and high-end-consumer markets is likely to aid results.
  • Demand for 5G modules, AI-driven data center products, and LoRa devices may boost performance.

Semtech Corporation (SMTC - Free Report) is scheduled to report second-quarter fiscal 2025 results on Aug. 25.

For the fiscal second quarter, Semtech anticipates revenues to be $256 million (+/- $5 million). The Zacks Consensus Estimate for revenues is pegged at $256 million, indicating a rise of 18.9% from the year-ago quarter.

SMTC anticipates non-GAAP earnings per share to be 40 cents (+/- 3 cents). The consensus mark for the same is pegged at 40 cents, unchanged over the past 60 days, indicating a robust improvement from the year-ago quarter’s earnings of 11 cents.

Factors to Consider for SMTC

Semtech’s fiscal second-quarter performance is likely to have benefited from strength across its infrastructure and high-end consumer end markets. Similarly, the wireless end-market is likely to have witnessed strong growth owing to SMTC’s increasing 5G offerings. Semtech’s launch of cost-optimized 5G solutions, including EM9492 and EM9295 modules, is likely to be adopted by telecom carriers. Increased compliance with certifications, including FCC, PTCRB for its EM8695 5G RedCap module and ISED, CE, JRF, and NCC certifications for its HL7900 Global 5G LPWA module, is likely to have boosted its adoption among global networking carriers.

Semtech Corporation Price and EPS Surprise

Semtech Corporation Price and EPS Surprise

Semtech Corporation price-eps-surprise | Semtech Corporation Quote

Strong Momentum across its Signal Integrity and Analog Mixed Signal & Wireless product lines is expected to have contributed well. The growing adoption of artificial intelligence might have been a plus for the upcoming quarter.

 

Growing traction across hyperscale data center applications on the back of Tri-Edge and FiberEdge transimpedance amplifier products is expected to have aided SMTC’s performance in the to-be-reported quarter. Robust demand for the company’s CopperEdge linear redrivers for Active Copper Cable applications is likely to have driven Semtech’s performance in the to-be-reported quarter.

The increasing demand for LoRa devices and LoRaWAN standards is expected to have contributed positively to top-line growth in the to-be-reported quarter. The availability of its one-channel LoRaWAN hub reference design and evaluation kit targeting smaller-scale network deployments, such as for SMB/SME and smart home applications, is anticipated to impact its second-quarter results positively.

However, macroeconomic challenges, including the protracted inflationary conditions and still-high interest rates, are likely to have posed challenges for the company in the fiscal second quarter. Additionally, escalating tensions between the United States and China might have raised concerns. Softness in the industrial end-market and the Connectivity segment is expected to have been a major negative.

What Our Proven Model Says for SMTC’s Q4 Earnings

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Semtech has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

BuildABear Workshop (BBW - Free Report) currently has an Earnings ESP of +11.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BuildABear Workshop shares have jumped 19.5% year to date. BuildABear Workshop is slated to report its second-quarter 2025 results on Aug. 28.

Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +2.62% and a Zacks Rank #3 at present.

Abercrombie & Fitch shares have declined 38.5% year to date. Abercrombie & Fitch is slated to report its second-quarter fiscal 2026 results on Aug. 27.

Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +3.17% and a Zacks Rank #3.

Bath & Body Works shares have declined 23.6% in the year-to-date period. Bath & Body Works is scheduled to report its second-quarter fiscal 2026 results on Aug. 28.

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