Semtech (NASDAQ:SMTC) Issues Earnings Results

Semtech (NASDAQ:SMTC) released its quarterly earnings data on Tuesday. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06, FiscalAI reports. Semtech had a positive return on equity of 18.45% and a negative net margin of 3.05%.The business had revenue of $291.00 million for the quarter, compared to the consensus estimate of $283.53 million. During the same quarter in the previous year, the company posted $0.38 EPS. The company’s revenue was up 15.9% compared to the same quarter last year. Semtech updated its Q2 2027 guidance to 0.590-0.630 EPS.

Here are the key takeaways from Semtech’s conference call:

• Semtech reported record quarterly revenue of $291 million, up 6% sequentially and 16% year over year, with adjusted EPS of $0.51 up 34% year over year. Management called it an “exceptional start” to fiscal 2027 and the ninth straight quarter of net sales growth.
• Data center momentum remained the main growth driver, with Q1 revenue of $71.6 million and management guiding 35% sequential growth in Q2. The company highlighted strong demand for 800G FiberEdge, initial 1.6T shipments, and expanding wins across hyperscalers and module makers.
• LoRa is seeing a renewed growth cycle, with Q1 LoRa-enabled sales up 12% sequentially and management targeting more than 15% sequential growth in Q2. Semtech said edge AI, smart utilities, smart buildings, and other new use cases are broadening the opportunity set.
• CopperEdge / ACC is gaining traction, with Q1 shipments beginning to a U.S. hyperscaler and more design wins expected in onboard and active backplane applications. Management said capacity is being expanded aggressively and that customer interest in the MSA could further accelerate adoption.
• Gross margins and profitability improved, with adjusted gross margin at 53% and adjusted operating margin at 20.4% in Q1. For Q2, Semtech guided to $328 million in revenue and $0.61 adjusted EPS, implying continued margin expansion and earnings growth.

Semtech Price Performance

Shares of Semtech stock opened at $157.20 on Thursday. The stock has a market cap of $14.64 billion, a price-to-earnings ratio of -403.08 and a beta of 2.22. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.66 and a current ratio of 2.37. The stock has a 50 day moving average price of $105.41 and a 200-day moving average price of $88.19. Semtech has a one year low of $34.59 and a one year high of $172.36.

Key Headlines Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech beat Q1 estimates with EPS of $0.51 versus $0.45 expected, and revenue of $291 million versus $283.5 million expected, with sales up 15.9% year over year on strong data center and infrastructure demand.
• Positive Sentiment: Management guided Q2 EPS to $0.59-$0.63 and revenue to $323 million-$333 million, both above consensus, signaling continued momentum in the next quarter.
• Positive Sentiment: Analysts turned more constructive after the results, with multiple firms raising price targets, including B. Riley to $210, Needham to $200, and Baird and UBS to $225, reinforcing optimism around data center and optical growth. Article: Semtech Stock Gains After Q1 Results Beat Estimates, Analysts Raise Price Targets
• Positive Sentiment: Commentary around the earnings call highlighted record revenue, accelerating data center growth, and design wins that may support further upside. Article: Semtech forecasts $328M Q2 revenue as it targets 35 percent sequential data center growth
• Neutral Sentiment: Analysts’ broader ratings remain favorable, with the stock carrying an average “Moderate Buy” recommendation.
• Negative Sentiment: Northland Securities downgraded Semtech to “market perform” before the earnings release, but that call has been overshadowed by the better-than-expected results and raised guidance.

Wall Street Analyst Weigh In

A number of research firms have issued reports on SMTC. Mizuho set a $225.00 price objective on Semtech in a research note on Wednesday. Robert W. Baird lifted their price objective on Semtech from $110.00 to $225.00 and gave the stock an “outperform” rating in a research note on Wednesday. UBS Group lifted their target price on Semtech from $165.00 to $225.00 and gave the stock a “buy” rating in a report on Wednesday. Northland Securities cut Semtech from an “outperform” rating to a “market perform” rating in a report on Tuesday. Finally, Benchmark lifted their target price on Semtech from $120.00 to $230.00 and gave the stock a “buy” rating in a report on Wednesday. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Semtech currently has an average rating of “Moderate Buy” and an average target price of $179.73.

Insider Transactions at Semtech

In related news, CEO Hong Q. Hou sold 2,000 shares of the business’s stock in a transaction on Friday, April 10th. The stock was sold at an average price of $90.11, for a total transaction of $180,220.00. Following the completion of the transaction, the chief executive officer owned 73,228 shares in the company, valued at $6,598,575.08. The trade was a 2.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul V. Walsh, Jr. sold 500 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $138.21, for a total value of $69,105.00. Following the transaction, the director owned 23,279 shares of the company’s stock, valued at approximately $3,217,390.59. The trade was a 2.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 36,884 shares of company stock worth $3,069,245. 0.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Semtech

Large investors have recently bought and sold shares of the business. Smartleaf Asset Management LLC boosted its holdings in Semtech by 24.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock valued at $57,000 after acquiring an additional 247 shares during the period. NewEdge Advisors LLC boosted its holdings in Semtech by 1,215.4% during the 3rd quarter. NewEdge Advisors LLC now owns 855 shares of the semiconductor company’s stock valued at $61,000 after acquiring an additional 790 shares during the period. Strs Ohio purchased a new position in Semtech during the 1st quarter valued at $65,000. Daiwa Securities Group Inc. boosted its holdings in Semtech by 100.8% during the 4th quarter. Daiwa Securities Group Inc. now owns 1,195 shares of the semiconductor company’s stock valued at $88,000 after acquiring an additional 600 shares during the period. Finally, Jones Financial Companies Lllp boosted its holdings in Semtech by 12,214.3% during the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock valued at $89,000 after acquiring an additional 2,565 shares during the period.

Semtech Company Profile

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.