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For the fiscal first quarter, Semtech anticipates revenues to be $283 million (+/- $5 million). The Zacks Consensus Estimate for revenues is pegged at $283.3 million, indicating a rise of 12.8% from the year-ago quarter.
SMTC anticipates non-GAAP earnings per share to be 45 cents (+/- 3 cents). The consensus mark for the same is pegged at 45 cents, unchanged over the past 60 days, indicating a rise of 18.4% from the year-ago quarter.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while matching once, the average surprise being 3.5%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence SMTC’s Q1 Results
Semtech’s fiscal first-quarter performance is expected to have benefited from continued strength in its infrastructure end markets, driven by growing demand across hyperscale data center applications. Strong adoption of SMTC’s FiberEdge transimpedance amplifiers and CopperEdge products for Active Copper Cable applications is likely to have aided the company’s prospects in the first quarter. Increasing AI infrastructure investments and rising deployments of 800G and 1.6T architectures are also expected to have driven demand for Semtech’s optical and copper interconnect solutions.
SMTC expects revenues from the infrastructure end market to increase sequentially and projects data center revenues to grow 12% on a sequential basis. The Zacks Consensus Estimate for revenues from the infrastructure end market is pegged at $92.3 million, indicating sequential growth of 11.6%.
Semtech’s first quarter prospects are likely to have benefited from improving seasonal trends in the high-end consumer market, supported by market share gains in TVS products and contributions from its recently acquired force sensing portfolio. SMTC expects revenues from the high-end consumer end market to increase 9% on a sequential basis. The Zacks Consensus Estimate for revenues from high-end consumer market is pegged at $39.9 million, indicating growth of 9% on a sequential basis.
Strong Momentum across its Signal Integrity and Analog Mixed Signal & Wireless product lines is expected to have contributed well. The company’s wireless business is expected to have benefited from expanding 5G offerings and increasing carrier readiness of its 5G solutions. The Zacks Consensus Estimate for revenues from the Signal Integrity segment is pegged at $98 million, indicating growth of 7.7% on a sequential basis. The Zacks Consensus Estimate for revenues from the Analog Mixed Signal & Wireless segment is pegged at $98 million, indicating growth of 4.3% on a sequential basis.
However, softness in the industrial end-market and IoT Systems and Connectivity business is likely to have weighed on the company’s prospects in the fiscal first quarter. SMTC expects net revenues from the industrial end market to remain flat in the first quarter. The Zacks Consensus Estimate for revenues from the industrial end market is pegged at $151 million, remaining flat on a sequential basis. The consensus estimate for revenues from the IoT Systems and Connectivity segment is pegged at $87 million, indicating a sequential decline of 3.3%.
Further, management also guided total semiconductor products’ gross margin to contract 130 basis points sequentially to 60.4% in the first quarter of fiscal 2027, attributing the decline to initial ramp costs related to the HieFo acquisition. This is likely to have weighed on the company’s gross margins in the first quarter.
What Our Proven Model Says for SMTC’s Q1 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 #2 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 some stocks you may want to consider in the Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Dell Technologies is set to report first-quarter fiscal 2027 results on May 28. The Zacks Consensus Estimate for Dell Technologies’ first-quarter fiscal 2027 earnings is pegged at $3.00 per share, up by 3 cents over the past seven days, indicating a rise of 93.6% from the year-ago quarter’s reported figure.
Salesforce, Inc. (CRM - Free Report) has an Earnings ESP of +0.15% and carries a Zacks Rank #2 at present.
Salesforce is scheduled to report first-quarter fiscal 2027 results on May 27. The Zacks Consensus Estimate for Salesforce’s first-quarter fiscal 2027 earnings is pegged at $3.12 per share, unchanged over the past 30 days, indicating a rise of 20.9% from the year-ago quarter’s reported figure.
Autodesk (ADSK - Free Report) has an Earnings ESP of +0.35% and carries a Zacks Rank of 3 at present.
Autodesk is slated to report first-quarter fiscal 2027 results on May 28. The Zacks Consensus Estimate for ADSK’s first-quarter fiscal 2027 earnings is pegged at $2.84 per share, unchanged over the past 30 days, indicating a rise of 24% from the year-ago quarter’s reported figure.
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SMTC Set to Report Q1 Earnings: What's in the Cards for the Stock?
Key Takeaways
Semtech Corporation (SMTC - Free Report) is scheduled to report first-quarter fiscal 2027 results on May 26.
For the fiscal first quarter, Semtech anticipates revenues to be $283 million (+/- $5 million). The Zacks Consensus Estimate for revenues is pegged at $283.3 million, indicating a rise of 12.8% from the year-ago quarter.
SMTC anticipates non-GAAP earnings per share to be 45 cents (+/- 3 cents). The consensus mark for the same is pegged at 45 cents, unchanged over the past 60 days, indicating a rise of 18.4% from the year-ago quarter.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while matching once, the average surprise being 3.5%.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence SMTC’s Q1 Results
Semtech’s fiscal first-quarter performance is expected to have benefited from continued strength in its infrastructure end markets, driven by growing demand across hyperscale data center applications. Strong adoption of SMTC’s FiberEdge transimpedance amplifiers and CopperEdge products for Active Copper Cable applications is likely to have aided the company’s prospects in the first quarter. Increasing AI infrastructure investments and rising deployments of 800G and 1.6T architectures are also expected to have driven demand for Semtech’s optical and copper interconnect solutions.
SMTC expects revenues from the infrastructure end market to increase sequentially and projects data center revenues to grow 12% on a sequential basis. The Zacks Consensus Estimate for revenues from the infrastructure end market is pegged at $92.3 million, indicating sequential growth of 11.6%.
Semtech’s first quarter prospects are likely to have benefited from improving seasonal trends in the high-end consumer market, supported by market share gains in TVS products and contributions from its recently acquired force sensing portfolio. SMTC expects revenues from the high-end consumer end market to increase 9% on a sequential basis. The Zacks Consensus Estimate for revenues from high-end consumer market is pegged at $39.9 million, indicating growth of 9% on a sequential basis.
Strong Momentum across its Signal Integrity and Analog Mixed Signal & Wireless product lines is expected to have contributed well. The company’s wireless business is expected to have benefited from expanding 5G offerings and increasing carrier readiness of its 5G solutions. The Zacks Consensus Estimate for revenues from the Signal Integrity segment is pegged at $98 million, indicating growth of 7.7% on a sequential basis. The Zacks Consensus Estimate for revenues from the Analog Mixed Signal & Wireless segment is pegged at $98 million, indicating growth of 4.3% on a sequential basis.
However, softness in the industrial end-market and IoT Systems and Connectivity business is likely to have weighed on the company’s prospects in the fiscal first quarter. SMTC expects net revenues from the industrial end market to remain flat in the first quarter. The Zacks Consensus Estimate for revenues from the industrial end market is pegged at $151 million, remaining flat on a sequential basis. The consensus estimate for revenues from the IoT Systems and Connectivity segment is pegged at $87 million, indicating a sequential decline of 3.3%.
Further, management also guided total semiconductor products’ gross margin to contract 130 basis points sequentially to 60.4% in the first quarter of fiscal 2027, attributing the decline to initial ramp costs related to the HieFo acquisition. This is likely to have weighed on the company’s gross margins in the first quarter.
What Our Proven Model Says for SMTC’s Q1 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 #2 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 some stocks you may want to consider in the Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +3.51% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies is set to report first-quarter fiscal 2027 results on May 28. The Zacks Consensus Estimate for Dell Technologies’ first-quarter fiscal 2027 earnings is pegged at $3.00 per share, up by 3 cents over the past seven days, indicating a rise of 93.6% from the year-ago quarter’s reported figure.
Salesforce, Inc. (CRM - Free Report) has an Earnings ESP of +0.15% and carries a Zacks Rank #2 at present.
Salesforce is scheduled to report first-quarter fiscal 2027 results on May 27. The Zacks Consensus Estimate for Salesforce’s first-quarter fiscal 2027 earnings is pegged at $3.12 per share, unchanged over the past 30 days, indicating a rise of 20.9% from the year-ago quarter’s reported figure.
Autodesk (ADSK - Free Report) has an Earnings ESP of +0.35% and carries a Zacks Rank of 3 at present.
Autodesk is slated to report first-quarter fiscal 2027 results on May 28. The Zacks Consensus Estimate for ADSK’s first-quarter fiscal 2027 earnings is pegged at $2.84 per share, unchanged over the past 30 days, indicating a rise of 24% from the year-ago quarter’s reported figure.