Semtech (SMTC) Q2 Earnings: What To Expect

Semiconductor company Semtech (NASDAQ:SMTC) will be reporting earnings this Monday after the bell. Here’s what investors should know.

Semtech met analysts’ revenue expectations last quarter, reporting revenues of $251.1 million, up 21.8% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts’ adjusted operating income estimates.

Is Semtech a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Semtech’s revenue to grow 18.9% year on year to $256.1 million, a reversal from the 9.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Semtech has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.

Looking at Semtech’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IPG Photonics’s revenues decreased 2.7% year on year, beating analysts’ expectations by 9.4%, and Amkor reported revenues up 3.4%, topping estimates by 6.3%. IPG Photonics traded down 6.9% following the results while Amkor was up 18.1%.

Read our full analysis of IPG Photonics’s results here and Amkor’s results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 3.8% on average over the last month. Semtech is down 3.4% during the same time and is heading into earnings with an average analyst price target of $58.42 (compared to the current share price of $51.25).

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