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Semtech (SMTC) to Report Q2 Earnings: What's in the Cards?
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Semtech Corporation (SMTC - Free Report) is scheduled to report second-quarter fiscal 2023 results on Aug 31.
For the fiscal second quarter, SMTC expects net sales of $203-$213 million. The Zacks Consensus Estimate for sales is pegged at $208.4 million, indicating an improvement of 12.7% from the last fiscal year’s quarterly reported figure.
SMTC anticipates non-GAAP earnings per share of 80-90 cents. The consensus mark for the same is pegged at 85 cents, indicating a 30.8% rise from the previous fiscal year’s quarterly reported figure. The consensus mark has been unchanged over the past 30 days.
Semtech’s earningssurpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 3.58%.
Semtech’s results for the fiscal second quarter are likely to reflect gains from the low power, high range (LoRa) business. Due to the cost-effective nature of the LoRa technology, SMTC has been signing a number of contracts for a while, which are expected to have expanded the adoption of LoRa devices.
During the underlined quarter, SMTC’s LoRa devices were incorporated into REYAX’s new antenna transceiver module, the REYAX RYLR998, making it usable for various Internet of Things (IoT) use cases.
This apart, SMTC unveiled LoRa Cloud Locator, a SaaS chip-to-Cloud service equipped with serverless technology. The new service enables customers to evaluate LoRa Edge implemented in various ecosystem trackers.
The above-mentioned initiatives are expected to have supported Semtech’s performance in the to-be-reported quarter.
Further, increasing demand for its BlueRiver technology is likely to have aided SMTC’s performance in the quarter under review.
In the fiscal second quarter, BlueRiver AV over IP technology platform was selected by the integrated service provider Mt. Titlis to be incorporated into its Smart City Integrated Command Center for delivering high-quality, uncompressed video. This might have been an upside in the said quarter.
In addition, the growing momentum of the Tri-Edge short-reach PAM4 platform is expected to have driven data center bookings in the concerned quarter, which might have been another positive.
Consistent strength in Semtech’s 10-gig and 2.5-gig PON platforms is likely to have propelled the PON business in the fiscal second quarter.
Continuous growth in shipments in Asia, North America and Europe is anticipated to have driven the top line in the quarter-to-be-reported.
Strength of 4G and 5G base station deployments might have driven Semtech’s wireless base station business in the concerned quarter. Continuous design wins for both ClearEdge and Tri-Edge in 5G base station front-haul optical modules are likely to have been a tailwind.
Semtech’s good management of working capital is expected to have contributed well to its cash flows from operations in the quarter under discussion.
SMTC completed the divestiture of its high-reliability discrete diodes and assemblies business to Micross Components, Inc. for $30 million.The impact of this divestiture is expected to get reflected in the upcoming quarterly results.
However, global supply-chain challenges are anticipated to have affected Semtechin the fiscal second quarter. Uncertainties related to the coronavirus pandemic are also likely to have been concerning.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Semtech this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Semtech has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Casey’s General Stores is scheduled to release first-quarter fiscal 2023 results on Sep 7. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.32 per share.
CarMax (KMX - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3 at present.
CarMax is scheduled to release second-quarter fiscal 2023 results on Sep 29. The Zacks Consensus Estimate for KMX’s earnings is pegged at $1.47 per share.
BlackRock (BLK - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +3.24%.
BlackRock is set to release third-quarter 2022 results on Oct 12. The Zacks Consensus Estimate for BLK’s earnings is pegged at $8.41 per share.
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Semtech (SMTC) to Report Q2 Earnings: What's in the Cards?
Semtech Corporation (SMTC - Free Report) is scheduled to report second-quarter fiscal 2023 results on Aug 31.
For the fiscal second quarter, SMTC expects net sales of $203-$213 million. The Zacks Consensus Estimate for sales is pegged at $208.4 million, indicating an improvement of 12.7% from the last fiscal year’s quarterly reported figure.
SMTC anticipates non-GAAP earnings per share of 80-90 cents. The consensus mark for the same is pegged at 85 cents, indicating a 30.8% rise from the previous fiscal year’s quarterly reported figure. The consensus mark has been unchanged over the past 30 days.
Semtech’s earningssurpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 3.58%.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Key Factors to Note
Semtech’s results for the fiscal second quarter are likely to reflect gains from the low power, high range (LoRa) business. Due to the cost-effective nature of the LoRa technology, SMTC has been signing a number of contracts for a while, which are expected to have expanded the adoption of LoRa devices.
During the underlined quarter, SMTC’s LoRa devices were incorporated into REYAX’s new antenna transceiver module, the REYAX RYLR998, making it usable for various Internet of Things (IoT) use cases.
This apart, SMTC unveiled LoRa Cloud Locator, a SaaS chip-to-Cloud service equipped with serverless technology. The new service enables customers to evaluate LoRa Edge implemented in various ecosystem trackers.
The above-mentioned initiatives are expected to have supported Semtech’s performance in the to-be-reported quarter.
Further, increasing demand for its BlueRiver technology is likely to have aided SMTC’s performance in the quarter under review.
In the fiscal second quarter, BlueRiver AV over IP technology platform was selected by the integrated service provider Mt. Titlis to be incorporated into its Smart City Integrated Command Center for delivering high-quality, uncompressed video. This might have been an upside in the said quarter.
In addition, the growing momentum of the Tri-Edge short-reach PAM4 platform is expected to have driven data center bookings in the concerned quarter, which might have been another positive.
Consistent strength in Semtech’s 10-gig and 2.5-gig PON platforms is likely to have propelled the PON business in the fiscal second quarter.
Continuous growth in shipments in Asia, North America and Europe is anticipated to have driven the top line in the quarter-to-be-reported.
Strength of 4G and 5G base station deployments might have driven Semtech’s wireless base station business in the concerned quarter. Continuous design wins for both ClearEdge and Tri-Edge in 5G base station front-haul optical modules are likely to have been a tailwind.
Semtech’s good management of working capital is expected to have contributed well to its cash flows from operations in the quarter under discussion.
SMTC completed the divestiture of its high-reliability discrete diodes and assemblies business to Micross Components, Inc. for $30 million.The impact of this divestiture is expected to get reflected in the upcoming quarterly results.
However, global supply-chain challenges are anticipated to have affected Semtechin the fiscal second quarter. Uncertainties related to the coronavirus pandemic are also likely to have been concerning.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Semtech this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Semtech has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +24.88% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey’s General Stores is scheduled to release first-quarter fiscal 2023 results on Sep 7. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.32 per share.
CarMax (KMX - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3 at present.
CarMax is scheduled to release second-quarter fiscal 2023 results on Sep 29. The Zacks Consensus Estimate for KMX’s earnings is pegged at $1.47 per share.
BlackRock (BLK - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +3.24%.
BlackRock is set to release third-quarter 2022 results on Oct 12. The Zacks Consensus Estimate for BLK’s earnings is pegged at $8.41 per share.