SEMTECH CORPORATION Reports Second Quarter Earnings for FY2024
September 15, 2023
🌥️Earnings Overview
SEMTECH CORPORATION ($NASDAQ:SMTC) announced their financial results for the second quarter of FY2024 on September 13 2023, showing an overall increase in revenue of 13.9% compared to Q2 of the previous year, reaching USD 238.4 million; however, the reported net income for the quarter was drastically lower at USD -382.0 million, a sharp decline from the 51.6 million reported in the same period the year before.
Market Price
The company’s stock opened at $22.7 and closed at $22.9, representing an increase of 0.7% from its previous closing price of 22.7. The company’s second quarter performance was supported by strong demand for their products and services in the consumer electronics and automotive markets. SEMTECH CORPORATION also reported improved gross margins, driven by a better product mix and higher pricing. Furthermore, their financial results were positively impacted by their strategic investments, which included acquisitions and stock buybacks.
Overall, SEMTECH CORPORATION’s second quarter earnings report exceeded market expectations and investors were pleased with the company’s performance. The stock price rose 0.7% driven by the strong results, indicating that market confidence is growing in the company’s ability to deliver profitable growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Semtech Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 820.04 | -439.68 | -33.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Semtech Corporation. More…
| Operations | Investing | Financing |
| -102.61 | -1.28k | 1.17k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Semtech Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.12k | 1.75k | 5.74 |
Key Ratios Snapshot
Some of the financial key ratios for Semtech Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.9% | 14.5% | -40.2% |
| FCF Margin | ROE | ROA |
| -16.7% | -37.5% | -9.7% |
Analysis
At GoodWhale, we have analyzed the fundamentals of SEMTECH CORPORATION and found it to have a high health score of 8/10 considering its cashflows and debt, making it capable to sustain future operations in times of crisis. We have also classified SEMTECH CORPORATION as a ‘rhino’, which is a type of company that has achieved moderate revenue or earnings growth. Given its strong profitability, medium asset, growth and weak dividend, this company may be of interest to investors looking for a moderate risk investment with potential for growth and a moderate dividend yield. SEMTECH CORPORATION may also appeal to investors looking for a portfolio diversification due to its moderate earnings and steady but slow growth. More…
Peers
Its products are found in a wide range of applications including communications, computing, consumer, industrial, automotive, and Internet of Things. Semtech’s competitors include Diodes Inc, Renesas Electronics Corp, and Vanguard International Semiconductor Corp.
– Diodes Inc ($NASDAQ:DIOD)
Diodes Incorporated is a leading global manufacturer and supplier of high-quality application specific standard products within the broad discrete, logic and analog semiconductor markets. Diodes serves the consumer electronics, computing, communications, industrial, automotive and medical market segments.
– Renesas Electronics Corp ($TSE:6723)
Renesas Electronics Corp is a Japanese semiconductor company. As of 2022, its market cap is 2.24T and its ROE is 14.83%. The company produces a wide range of semiconductor products, including microcontrollers, SoCs, and ASSPs. It also offers a variety of services, such as design, development, and manufacturing.
– Vanguard International Semiconductor Corp ($TPEX:5347)
Vanguard International Semiconductor Corp is a Taiwanese company that manufactures and sells semiconductors. It has a market cap of 106.7B as of 2022 and a Return on Equity of 32.12%. The company’s products include DRAMs, SRAMs, flash memory, and CMOS image sensors.
Summary
SEMTECH CORPORATION‘s second quarter earnings results showed an increase in total revenue compared to the same period last year, but a sharp drop in net income. Investors should keep in mind that the company’s revenue growth is encouraging, but the decrease in net income needs to be further evaluated to determine the underlying cause and potential impact on future performance. Analysts should also consider factors such as recent industry developments, product launches, and customer feedback to evaluate the overall health of the business.
