Roth Capital Issues Negative Estimate for Semtech Earnings

Key Points

• Roth Capital has lowered its earnings per share estimate for Semtech's Q3 2026 from $0.37 to $0.34, reflecting a cautious outlook for the semiconductor company's profitability.
• Despite a decrease in earnings estimates, several analysts have upgraded their price targets for Semtech, with ratings varied from "buy" to "outperform," indicating ongoing investor interest.
• Semtech recently reported a 21.8% year-over-year increase in quarterly revenue, highlighting strong growth despite ongoing market fluctuations.

Semtech Corporation (NASDAQ:SMTC - Free Report) - Roth Capital decreased their Q3 2026 earnings per share (EPS) estimates for Semtech in a report released on Monday, August 25th. Roth Capital analyst S. Searle now anticipates that the semiconductor company will earn $0.34 per share for the quarter, down from their previous forecast of $0.37. The consensus estimate for Semtech's current full-year earnings is ($0.02) per share. Roth Capital also issued estimates for Semtech's FY2026 earnings at $1.27 EPS, Q1 2027 earnings at $0.23 EPS, Q2 2027 earnings at $0.36 EPS, Q3 2027 earnings at $0.51 EPS and FY2027 earnings at $1.59 EPS.

Semtech (NASDAQ:SMTC - Get Free Report) last issued its quarterly earnings data on Tuesday, May 27th. The semiconductor company reported $0.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.10. Semtech had a return on equity of 21.52% and a net margin of 2.38%.The business had revenue of $251.10 million during the quarter, compared to analyst estimates of $249.79 million. During the same period in the previous year, the firm earned $0.06 EPS. Semtech's quarterly revenue was up 21.8% compared to the same quarter last year.

Other equities research analysts also recently issued research reports about the stock. Needham & Company LLC increased their price objective on shares of Semtech from $54.00 to $60.00 and gave the stock a "buy" rating in a research report on Tuesday. Craig Hallum increased their target price on Semtech from $55.00 to $62.00 and gave the stock a "buy" rating in a report on Tuesday. Northland Securities lifted their price target on Semtech from $48.00 to $53.00 and gave the company an "outperform" rating in a research note on Tuesday. Piper Sandler upped their price objective on Semtech from $55.00 to $65.00 and gave the stock an "overweight" rating in a research report on Tuesday. Finally, Benchmark reiterated a "buy" rating and set a $68.00 price objective on shares of Semtech in a report on Tuesday. Eleven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $60.42.

Semtech Stock Performance

Shares of SMTC stock opened at $58.13 on Thursday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.81 and a current ratio of 2.53. Semtech has a 52 week low of $24.05 and a 52 week high of $79.52. The company's 50 day moving average price is $49.16 and its two-hundred day moving average price is $40.04. The company has a market capitalization of $5.04 billion, a P/E ratio of 242.21 and a beta of 1.94.

Hedge Funds Weigh In On Semtech

A number of institutional investors have recently added to or reduced their stakes in the company. Raymond James Financial Inc. acquired a new stake in Semtech in the fourth quarter valued at $360,000. Marshall Wace LLP raised its holdings in shares of Semtech by 73.1% in the 4th quarter. Marshall Wace LLP now owns 9,277 shares of the semiconductor company's stock valued at $574,000 after purchasing an additional 3,919 shares during the period. Dimensional Fund Advisors LP lifted its stake in Semtech by 11.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 17,571 shares of the semiconductor company's stock valued at $1,087,000 after purchasing an additional 1,813 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in Semtech by 328.1% during the fourth quarter. Tower Research Capital LLC TRC now owns 1,507 shares of the semiconductor company's stock worth $93,000 after purchasing an additional 1,155 shares during the period. Finally, Hsbc Holdings PLC increased its position in Semtech by 36.5% during the fourth quarter. Hsbc Holdings PLC now owns 10,568 shares of the semiconductor company's stock worth $657,000 after buying an additional 2,828 shares during the last quarter.

Insider Activity

In related news, CFO Mark Lin sold 999 shares of the company's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $43.84, for a total transaction of $43,796.16. Following the sale, the chief financial officer owned 17,211 shares in the company, valued at approximately $754,530.24. This represents a 5.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Asaf Silberstein sold 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $42.98, for a total value of $85,960.00. Following the completion of the transaction, the chief operating officer owned 105,996 shares of the company's stock, valued at approximately $4,555,708.08. This represents a 1.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.48% of the company's stock.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications.

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