Semtech (NASDAQ:SMTC) Updates Q3 2027 Earnings Guidance

Key Points

• Semtech raised its fiscal Q3 2027 outlook well above analyst expectations, projecting revenue of $405 million–$415 million versus the $359.3 million consensus and EPS of $1.02–$1.08 versus $0.69 expected.
• The company also reported a strong fiscal Q2, with adjusted EPS of $0.71 beating estimates and record sales of $341.9 million, up 33% year over year. Growth is being driven by data-center networking, AI-related products, LoRa IoT and GaN demand.
• Semtech shares rose 5.5% during Tuesday trading, while Wall Street maintained a favorable view: 14 analysts rated the stock Buy, producing a “Moderate Buy” consensus and an average price target of $189.47. However, continued insider selling and limited institutional reductions remain potential sentiment risks.

Semtech (NASDAQ:SMTC - Get Free Report) updated its third quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 1.020-1.080 for the period, compared to the consensus EPS estimate of 0.690. The company issued revenue guidance of $405.0 million-$415.0 million, compared to the consensus revenue estimate of $359.3 million.

Semtech Stock Up 5.5%

NASDAQ:SMTC traded up $6.61 during trading hours on Tuesday, hitting $127.52. The stock had a trading volume of 7,553,502 shares, compared to its average volume of 2,684,369. The company has a market cap of $11.88 billion, a PE ratio of -326.97 and a beta of 2.35. The business has a 50 day simple moving average of $136.80 and a two-hundred day simple moving average of $117.89. Semtech has a 1-year low of $53.62 and a 1-year high of $177.35. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86.

Semtech (NASDAQ:SMTC - Get Free Report) last posted its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.10. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. Analysts predict that Semtech will post 1.81 EPS for the current year.

Wall Street Analyst Weigh In

SMTC has been the topic of a number of recent analyst reports. BMO Capital Markets assumed coverage on shares of Semtech in a report on Thursday. They issued an "outperform" rating and a $155.00 price objective on the stock. Roth Capital raised their price objective on shares of Semtech from $102.00 to $190.00 and gave the stock a "buy" rating in a report on Monday. Susquehanna boosted their target price on shares of Semtech from $170.00 to $200.00 and gave the stock a "positive" rating in a research report on Wednesday, May 27th. Craig Hallum increased their price target on shares of Semtech from $105.00 to $205.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. Finally, New Street Research set a $230.00 price objective on Semtech in a report on Thursday, August 20th. Fourteen research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $189.47.

Insider Transactions at Semtech

In other Semtech news, CEO Hong Q. Hou sold 2,000 shares of the business's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $133.00, for a total transaction of $266,000.00. Following the completion of the sale, the chief executive officer owned 64,799 shares in the company, valued at $8,618,267. The trade was a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total transaction of $294,093.60. Following the sale, the executive vice president directly owned 8,611 shares in the company, valued at $1,118,568.90. This trade represents a 20.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,734 shares of company stock valued at $3,133,986 over the last quarter. Insiders own 0.44% of the company's stock.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Raised outlook well above consensus: Semtech forecast fiscal Q3 revenue of $405 million-$415 million, versus the $359.3 million analyst consensus, and adjusted EPS of $1.02-$1.08, compared with expectations of $0.69. The company’s midpoint revenue forecast is approximately 14% above consensus, while the EPS midpoint is more than 50% higher. Semtech earnings press release
• Positive Sentiment: Quarterly results beat estimates: Semtech reported adjusted EPS of $0.71, topping the $0.61 consensus estimate. Fiscal Q2 net sales reached a record $341.9 million, up 17% sequentially and 33% year over year. GAAP operating income more than doubled from the prior quarter to $55.8 million, while free cash flow was $61.4 million. Semtech posts record fiscal second-quarter sales
• Positive Sentiment: Growth catalysts remain in focus: Ahead of the report, investor attention centered on AI data-center networking, a reported 1.6T product ramp, LoRa IoT growth and GaN demand reportedly outpacing supply. Strong guidance indicates management expects these trends to support near-term acceleration. Semtech earnings preview
• Neutral Sentiment: Semtech will host a LoRa ecosystem forum at the IOTE 2026 exhibition in Shenzhen, highlighting its connected-device ecosystem. The event may provide additional updates, but it is not yet a material financial catalyst. Semtech LoRa ecosystem forum announcement
• Negative Sentiment: Insider-trading data showed 28 open-market sales and no purchases during the past six months. Large institutional investors, including BlackRock and Ameriprise, also reduced holdings in recent filings, which could temper sentiment despite the strong operating results.
• Negative Sentiment: A law firm solicitation urged shareholders to investigate potential fiduciary-duty issues involving insiders. The notice does not establish wrongdoing, but it adds a limited headline risk.

Hedge Funds Weigh In On Semtech

Several institutional investors have recently made changes to their positions in SMTC. Jones Financial Companies Lllp boosted its position 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 purchasing an additional 2,565 shares during the period. Empowered Funds LLC lifted its stake in Semtech by 11.5% in the first quarter. Empowered Funds LLC now owns 9,389 shares of the semiconductor company's stock valued at $323,000 after buying an additional 968 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Semtech by 5.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 411,814 shares of the semiconductor company's stock valued at $14,166,000 after buying an additional 22,629 shares during the last quarter. Strs Ohio acquired a new position in shares of Semtech during the first quarter valued at $65,000. Finally, Cetera Investment Advisers acquired a new position in shares of Semtech during the second quarter valued at $226,000.

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.

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