Roth Capital Optimistic About Semtech's FY2025 Earnings

Posted on November 30, 2024

Investment analysts at Roth Capital have recently updated their earnings per share estimates for Semtech Corporation (NASDAQ:SMTC) for the fiscal year 2025. In a report issued on November 25, Roth Capital's analyst, S. Searle, has raised the forecast, now anticipating that the semiconductor company will achieve earnings of $0.02 per share. This marks a notable improvement from the previous estimate of a loss of $0.01 per share. Comparatively, the current consensus estimate for Semtech's earnings for the full year stands at a loss of $0.07 per share.

In a recent earnings announcement, Semtech reported its quarterly results, showing earnings per share of $0.26 for the quarter, surpassing the analyst consensus of $0.23 by $0.03. The company's revenue for the quarter was $236.80 million, exceeding the consensus estimate of $232.89 million. Despite a negative return on equity of 154.99% and a net margin of negative 99.08%, Semtech’s revenue was up 17.9% year-over-year, rising from $0.02 EPS in the same quarter of the previous year.

Several equity analysts have provided updates on Semtech stock recently. Needham & Company LLC reaffirmed a “buy” rating, increasing the price target from $50.00 to $70.00. Roth Mkm also upgraded their target price for Semtech shares from $50.00 to $60.00, maintaining a “buy” rating. B. Riley raised their price target significantly from $61.00 to $85.00 while maintaining a “buy” rating. Similarly, Stifel Nicolaus raised their price objective from $58.00 to $65.00, and Susquehanna lifted their target price from $55.00 to $60.00, offering a “positive” rating. Currently, three analysts have given Semtech a hold rating, while ten analysts recommend buying the stock, with an average rating of “Moderate Buy” and a consensus price target of $67.70 according to MarketBeat.com.

Semtech Stock Performance

On Thursday, shares of Semtech (NASDAQ:SMTC) opened at $64.04. The stock has fluctuated with a low of $15.63 and a high of $66.64 over the past 52 weeks. Semtech holds a market capitalization of $4.82 billion, with a P/E ratio of -4.83 and a beta of 1.54. The company’s 50-day moving average is $47.00, while the 200-day moving average is $39.47.

Institutional Investor Activity

Recent trading activity has seen several hedge funds adjusting their holdings in Semtech. Disciplined Growth Investors Inc. MN increased its position by an impressive 343.3% during the second quarter, now holding 2,494,985 shares valued at $74.55 million after acquiring 1,932,116 additional shares. Driehaus Capital Management LLC has entered the stock by purchasing a stake valued at approximately $43.40 million. Meanwhile, Millennium Management LLC grew its stake by 26.6%, owning 3,646,449 shares worth about $108.95 million after acquiring an extra 765,877 shares. Whale Rock Capital Management LLC secured a new stake valued at around $32.13 million in the third quarter. Finally, Clearline Capital LP upped its position by 143.1%, owning 899,021 shares worth $26.86 million after purchasing an additional 529,194 shares in the last quarter.

About Semtech Corporation

Semtech Corporation specializes in designing, developing, manufacturing, and marketing a range of analog and mixed-signal semiconductor products and advanced algorithms. The company provides various products including signal integrity solutions, data communications, and video transport products used across multiple infrastructure and industrial applications, as well as integrated circuits for data centers, enterprise networks, and wireless base station transceivers.

Semtech, Earnings, Analysis