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Semtech (SMTC) to Release Q1 Earnings: What's in the Cards?

Zacks Equity Research
·4-min read

Semtech Corporation SMTC is scheduled to report first-quarter fiscal 2024 results on Jun 7.

For the fiscal first quarter, SMTC expects net sales between $230 million and $240 million. The Zacks Consensus Estimate for sales is pegged at $234.4 million, indicating 15.9% growth from the last fiscal year’s quarterly figure.

SMTC anticipates non-GAAP loss per share of 4-11 cents. The consensus mark for the metric is pegged at a loss of 7 cents per share. The company reported earnings of 80 cents per share in the year-ago quarter. The bottom line estimate has been unchanged over the past 30 days.

Semtech’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average being 2.18%.

Semtech Corporation Price and EPS Surprise

Semtech Corporation Price and EPS Surprise
Semtech Corporation Price and EPS Surprise

Semtech Corporation price-eps-surprise | Semtech Corporation Quote

Key Factors to Note

Semtech’s fiscal first-quarter results are likely to reflect portfolio strength.

In the quarter under review, the company expanded its PerSe product line by introducing the PerSe Connect SX9376 chipset, specifically for 5G mobile devices.

Further, Semtech announced the production availability of two new solutions for trans-impedance amplifiers (TIAs), namely FiberEdge GN1300 and GN1400, which will provide optimized performance for the PIN receiver optical sub-assembly (ROSA) and APD ROSA applications.

SMTC also unveiled a transceiver, namely LoRa Connect LR1121, in a bid to bolster its LoRa portfolio. The new transceiver features low power consumption, the LoRaWAN standard and global connectivity.

Moreover, strengthening momentum across its LoRa technology is likely to have continued benefiting the company during the fiscal first quarter. Due to the cost-effective nature of the LoRa technology, SMTC has been signing several contracts for a while, which are expected to have expanded the adoption of LoRa devices.

During the underlined fiscal quarter, Semtech collaborated with The Things Industries to introduce Internet of Things (IoT) solutions that combine LoRaWAN and cellular technologies. More precisely, the solutions will be integrated with long-range coverage and ultra-low-power LoRa devices and high-speed cellular connections.

However, global supply-chain challenges, COVID-related uncertainties in China and inflation and recession fears are anticipated to have remained headwinds in the fiscal first quarter.

Softness in the consumer end markets is expected to have negatively impacted Semtech’s performance in the 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.

Semtech 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.

SMTC has a Zacks Rank #4 (Sell) 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.

ABM Industries ABM has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ABM is scheduled to release second-quarter fiscal 2023 results on Jun 6. The Zacks Consensus Estimate for ABM’s earnings is pegged at 86 cents per share.

Accolade ACCD has an Earnings ESP of +1.81% and currently carries a Zacks Rank #3.

Accolade is set to report first-quarter fiscal 2024 results on Jun 29. The Zacks Consensus Estimate for ACCD’s loss is pegged at 65 cents per share.

Jabil JBL has an Earnings ESP of +0.43% and a Zacks Rank #3 at present.

JBL is expected to report third-quarter fiscal 2023 results on Jun 15. The Zacks Consensus Estimate for JBL’s earnings is pegged at $1.88 per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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