Semtech Corporation Beats Expectations with Non-GAAP EPS of $0.02 and Revenue of $200.9M

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Semtech Corporation ($NASDAQ:SMTC), a leading supplier of analog and mixed-signal semiconductors, recently reported Non-GAAP Earnings Per Share (EPS) of $0.02, beating expectations by $0.17.

Additionally, revenue of $200.9M beat estimates by $0.35M. This marked the company’s third consecutive quarter of revenue growth. The company also designs and manufactures high-frequency radio transceivers and other components used in advanced electronic devices for the military, consumer electronics, information technology, and automotive markets. Its products are used in numerous applications such as automotive radar, wireless charging, and medical imaging. With its headquarters in Camarillo, California, Semtech has offices all over the world. The strong financial performance of Semtech Corporation was due to increased demand for its high-performance products across its key markets. The company has been investing heavily in research and development and expanding its product portfolio to meet the needs of its customers. This strategy has enabled it to capture a larger share of the market and drive revenue growth.

Earnings

This is a noticeable decrease from the previous year’s total revenue of $185.0M and net income of $32.93M, representing 11.6% and 36.2% decreases in total revenue and net income respectively. Over the last three years, SEMTECH CORPORATION has seen its total revenue increase from $185.0M to $238.37M. This is indicative of a steady revenue growth for the company over the last three years despite the pandemic.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Semtech Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Semtech Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Semtech Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Semtech Corporation are shown below. More…

Stock Price

On Wednesday, Semtech Corporation reported better-than-expected revenue and non-GAAP earnings per share (EPS) for the quarter ending March 31, 2021. The better-than-expected results drove the SEMTECH CORPORATION stock up by 0.1% in the market. The stock opened at $17.0 and closed at $16.7, which was the same as the last closing price of $16.7. This marks a positive start for the company this quarter and investors will be watching closely to see how the company progresses in future quarters. Live Quote…

Analysis

After reviewing SEMTECH CORPORATION‘s fundamentals, our Star Chart analysis classifies them as a ‘Rhino’. This type of company generally has achieved moderate revenue or earnings growth. As SEMTECH CORPORATION has a high health score of 8/10 considering its cash flows and debt, it is capable of sustaining future operations in times of crisis. In terms of investor appeal, the company scores strong in profitability, medium in asset, growth and weak in dividend. This means that investors who are looking for moderate growth and stability would be interested in investing in SEMTECH CORPORATION. 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, a leading provider of analog and mixed-signal semiconductor products, recently reported its third quarter earnings. Non-GAAP EPS of $0.02 beat analysts’ estimates by $0.17, while revenue of $200.9M beat estimates by $0.35M. The company’s share price rose in after-hours trading on the news. Analysts believe that strong demand for analog and mixed-signal semiconductor products, combined with improved cost controls, drove the strong performance.

This quarter’s results demonstrate SEMTECH’s ability to successfully navigate in a challenging macroeconomic environment. Looking forward, analysts remain optimistic about the company’s prospects and expect continued growth in the coming quarters.