Semtech (NASDAQ:SMTC) Issues Q2 2027 Earnings Guidance

Key Points

• Semtech raised its Q2 2027 guidance, forecasting EPS of $0.59-$0.63 and revenue of $323 million-$333 million, both above Wall Street expectations.
• The company’s stock surged sharply on the news, trading up to $164.46 with heavy volume, near its 52-week high of $168.29.
• Recent analyst sentiment has been mixed, but the overall view remains Moderate Buy with a consensus price target of $118.50, while some firms downgraded the stock this week.

Semtech (NASDAQ:SMTC - Get Free Report) updated its second quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 0.590-0.630 for the period, compared to the consensus EPS estimate of 0.490. The company issued revenue guidance of $323.0 million-$333.0 million, compared to the consensus revenue estimate of $300.4 million.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Northland Securities downgraded Semtech from an "outperform" rating to a "market perform" rating in a research report on Tuesday. Needham & Company LLC boosted their price target on shares of Semtech from $100.00 to $105.00 and gave the stock a "buy" rating in a research report on Tuesday, March 17th. Citigroup cut shares of Semtech from a "buy" rating to a "market perform" rating in a research report on Tuesday. Wall Street Zen cut shares of Semtech from a "strong-buy" rating to a "buy" rating in a research report on Monday, January 26th. Finally, Weiss Ratings cut shares of Semtech from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Tuesday, March 24th. Thirteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Semtech presently has a consensus rating of "Moderate Buy" and a consensus price target of $118.50.

Semtech Price Performance

Semtech stock traded up $7.68 during mid-day trading on Tuesday, hitting $164.46. The company's stock had a trading volume of 8,208,461 shares, compared to its average volume of 2,239,979. The company has a quick ratio of 1.66, a current ratio of 2.37 and a debt-to-equity ratio of 0.89. The stock has a market capitalization of $15.31 billion, a P/E ratio of -373.77 and a beta of 2.22. Semtech has a twelve month low of $34.59 and a twelve month high of $168.29. The stock's fifty day moving average price is $102.46 and its two-hundred day moving average price is $86.90.

Semtech (NASDAQ:SMTC - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.06. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The business had revenue of $291.00 million during the quarter, compared to analyst estimates of $283.53 million. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Research analysts forecast that Semtech will post 1.6 earnings per share for the current year.

Insiders Place Their Bets

In other Semtech news, CEO Hong Q. Hou sold 2,000 shares of Semtech stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $90.11, for a total transaction of $180,220.00. Following the transaction, the chief executive officer directly owned 73,228 shares in the company, valued at approximately $6,598,575.08. The trade was a 2.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Martin Burvill sold 2,500 shares of Semtech stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $88.98, for a total transaction of $222,450.00. Following the transaction, the director owned 4,409 shares in the company, valued at approximately $392,312.82. The trade was a 36.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 36,884 shares of company stock valued at $3,069,245 over the last 90 days. 0.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Semtech

Several institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. NewEdge Advisors LLC raised its position in Semtech by 1,215.4% during the third quarter. NewEdge Advisors LLC now owns 855 shares of the semiconductor company's stock valued at $61,000 after buying an additional 790 shares during the period. Daiwa Securities Group Inc. raised its position in Semtech by 100.8% during the fourth quarter. Daiwa Securities Group Inc. now owns 1,195 shares of the semiconductor company's stock valued at $88,000 after buying an additional 600 shares during the period. Smartleaf Asset Management LLC raised its position in Semtech by 24.1% during the second quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company's stock valued at $57,000 after buying an additional 247 shares during the period. Kestra Advisory Services LLC acquired a new position in Semtech during the fourth quarter valued at $112,000. Finally, State of Wyoming raised its position in Semtech by 19.3% during the fourth quarter. State of Wyoming now owns 1,524 shares of the semiconductor company's stock valued at $112,000 after buying an additional 247 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.

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