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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 2025 results on Aug 27.
For the second quarter, SMTC expects revenues to be between $207 million and $217 million. The Zacks Consensus Estimate for sales is pegged at $212.42 million, indicating a decline of 10.9% from the year-ago quarter’s reported value.
SMTC anticipates non-GAAP-based earnings in the band of 6-12 cents per share. The consensus mark for the same is pegged at 10 cents, indicating a fall of 9.1%.
Semtech’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average surprise of 181.1%.
Let’s see how things have shaped up for the upcoming announcement.
SMTC’s second-quarter fiscal 2025 performance is likely to have benefited from strong momentum across infrastructure and high-end-consumer end markets.
Strength across its Signal Integrity and Analog Mixed Signal & Wireless product lines are expected to have contributed well.
The growing adoption of Artificial Intelligence (AI) might have been a plus.
Growing traction across hyperscale data center applications on the back of Tri-Edge products is expected to have been a tailwind for the company in the to-be-reported quarter.
Robust demand for the company’s passive optical network products is likely to have continued driving revenue growth in the fiscal second quarter.
The strong momentum in the module business owing to increasing demand for Semtech’s 5G offerings is likely to have been a major positive. Strength in FiberEdge TIAs and laser drivers for 400-gig and 800-gig optical modules is expected to have boosted the business further.
The growing demand for LoRa devices and LoRaWAN standards is anticipated to have contributed well to top-line growth in the to-be-reported quarter.
However, macroeconomic challenges, high inflation and rising recessionary fears are expected to have created headwinds for the company in the quarter under review. Rising tensions between the United States and China might have been a concern.
Softness in the industrial end-market is expected to have been a major negative.
What Our Model Says
Per the Zacks model, 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 is not the case here.
Semtech Corporation has an Earnings ESP of +15.79% and currently has a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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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 2025 results on Aug 27.
For the second quarter, SMTC expects revenues to be between $207 million and $217 million. The Zacks Consensus Estimate for sales is pegged at $212.42 million, indicating a decline of 10.9% from the year-ago quarter’s reported value.
SMTC anticipates non-GAAP-based earnings in the band of 6-12 cents per share. The consensus mark for the same is pegged at 10 cents, indicating a fall of 9.1%.
Semtech’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average surprise of 181.1%.
Let’s see how things have shaped up for the upcoming announcement.
Semtech Corporation Price and EPS Surprise
Semtech Corporation price-eps-surprise | Semtech Corporation Quote
Key Factors to Note
SMTC’s second-quarter fiscal 2025 performance is likely to have benefited from strong momentum across infrastructure and high-end-consumer end markets.
Strength across its Signal Integrity and Analog Mixed Signal & Wireless product lines are expected to have contributed well.
The growing adoption of Artificial Intelligence (AI) might have been a plus.
Growing traction across hyperscale data center applications on the back of Tri-Edge products is expected to have been a tailwind for the company in the to-be-reported quarter.
Robust demand for the company’s passive optical network products is likely to have continued driving revenue growth in the fiscal second quarter.
The strong momentum in the module business owing to increasing demand for Semtech’s 5G offerings is likely to have been a major positive. Strength in FiberEdge TIAs and laser drivers for 400-gig and 800-gig optical modules is expected to have boosted the business further.
The growing demand for LoRa devices and LoRaWAN standards is anticipated to have contributed well to top-line growth in the to-be-reported quarter.
However, macroeconomic challenges, high inflation and rising recessionary fears are expected to have created headwinds for the company in the quarter under review. Rising tensions between the United States and China might have been a concern.
Softness in the industrial end-market is expected to have been a major negative.
What Our Model Says
Per the Zacks model, 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 is not the case here.
Semtech Corporation has an Earnings ESP of +15.79% and currently has a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
nCino (NCNO - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
nCino shares have returned 3.6% year to date. nCino is set to report its second-quarter fiscal 2025 results on Aug 27.
Nutanix (NTNX - Free Report) has an Earnings ESP of +7.48% and a Zacks Rank of #3 at present.
Nutanix shares have gained 11.6% year to date. NTNX is set to report its fourth-quarter fiscal 2024 results on Aug 28.
Pure Storage (PSTG - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank of #3 at present.
Pure Storage shares have surged 69.5% year to date. PSTG is set to report its second-quarter fiscal 2025 results on Aug 28.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.