Latest news with #Semtech
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2 days ago
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3 New Strong Buy Ratings from Top-Rated Analysts: 06/05/2025
Tax season has cooled down, but Intuit (INTU) is heating up — plus, 2 more recent Strong Buy recommendations from top-rated analysts This story originally appeared on WallStreetZen Here's a peek at the latest picks from our most-visited stock screener: Tax season has cooled down, but Intuit ( INTU ) is heating up is heating up Why Flex ( FLEX ) has unanimous Strong Buy ratings has unanimous Strong Buy ratings Is Semtech (SMTC) a fantastic "buy the dip" opportunity? P.S. Get more alerts like this daily … Try WallStreetZen Premium. Investors often come across the phrase "buy the dip" — but with Semtech Corp, it'd be more apt to say "buy the plunge." After an unexpected setback when it comes to revenue from a crucial segment, SMTC stock has lost significant value since the beginning of the year. However, there's an odd dissonance at play — while analysts have cut their price targets accordingly, they're still bullish, and see plenty of upside — particularly at the current, reduced valuation. Zen Rating: B (Buy) — see full analysis > Recent Price: $37.10 — get current quote > Max 1-year forecast: $68.00 Why we're watching: At present, 8 Wall Street researchers issue ratings for SMTC stock — 4 have deemed it a Strong Buy, 3 have given it a Buy rating, and 1 analyst rates the stock a Hold. There are currently no Sell or Strong Sell ratings. See the ratings The average price forecast of $55.75 implies a 55.9% upside from the current price of Semtech shares. Stifel Nicolaus researcher Tore Svanberg (a top 4% rated analyst) maintained a Strong Buy rating after the company's Q1 2026 earnings, and upped his price target from $42 to $45. Svanberg summarized the quarter with "in-line results and in-line Q2 guidance." Looking ahead, the analyst said that in spite of the near-term ACC business "air pocket," Semtech's next-gen CopperEdge ACC products continue to generate significant interest, infrastructure momentum continues, and the company's profitability is improving. Benchmark's Cody Acree (a top 9% rated analyst) also doubled down on a Strong Buy rating following the quarterly report — and reiterated a Street-high price target of $68. Once SMTC's performance across our 7 Component Grade ratings are squared, the stock ranks in the top 9% of equities on the whole — placing it firmly in the upper end of stocks with a Zen Rating of B, equivalent to a Buy. Semtech does exceptionally well in two areas — Financials, where it ranks in the top 5% of stocks, and Growth, where it ranks in the top 2%. (See all 7 Zen Component Grades here >) Flex is a company that wears many hats — as it helps design, build, and deliver products and entire supply chains across a wide variety of industries, including automotive, healthcare, and even cloud computing. At present, the business is reorienting itself toward high-growth and high-margin areas — chiefly data centers, and it seems to be paying off. Zen Rating: A (Strong Buy) — see full analysis > Recent Price: $42.33 — get current quote > Max 1-year forecast: $52.00 Why we're watching: In a clear cut case of overwhelmingly positive coverage, 7 analysts issue ratings for FLEX — all 7 rate the stock a Strong Buy. See the ratings Following the company's Q4 and FY 2025 earnings call, two top-rated analysts doubled down on their bullish coverage. Justin Patterson of KeyBanc (a top 7% rated analyst) maintained a Strong Buy rating and increased his price target on FLEX shares from $35 to $44. According to Patterson, the stock was up post-print because the quarter beat consensus and management's FY 2026 guidance was higher on EPS, although lower on revenue. Overall, the analyst argued that Q4 "generally surpassed lowered expectations, even though datacenter/AI headlines and narratives have changed recently." Barclays researcher George Wang (a top 11% rated analyst) also reiterated a Strong Buy rating, and increased his price forecast from $49 to $50. "The company delivered a solid quarter, and its positive mix shift is bearing fruit," Wang told investors. Flex ranks in the top 4% of equities on the whole , giving it an overall Zen Rating of A. , giving it an overall Zen Rating of A. For a better idea as to why FLEX ranks so highly, we have to take a closer look at its Component Grade ratings. When it comes to Safety, the stock ranks in the top 17%. In terms of Sentiment, it ranks in the top 12%. However, the Artificial Intelligence rating steals the show — in this regard, FLEX ranks in the top 10% of the more than 4,600 equities that we track. (See all 7 Zen Component Grades here >) Ever used TurboTax? You're one of Intuit's customers. For decades, this business has dominated the financial and compliance software market. Despite declining share prices, the company maintains a strong checkbook and enjoys confidence from Wall Street — which means it also merits a closer look. Zen Rating: B (Buy) — see full analysis > Recent Price: $752.04 — get current quote > Max 1-year forecast: $875.00 Why we're watching: INTU has received a lot of attention from Wall Street — the stock currently has 18 ratings, divided between 11 Strong Buys, 6 Buys, and 1 Hold. See the ratings Following the company's Q3 2025 earnings, Michael Turrin of Wells Fargo (a top 24% rated analyst) reissued a Strong Buy rating, and hiked his price target from $775 to $825. Turrin told readers that the inflection in Live was the catalyst behind the tax outperformance that dominated the print. Live's sustainability into next year was reaffirmed by management, the analyst said, "and QuickBooks' mission criticality continues to shine through." In addition, Bank of America researcher Brad Sills (a top 5% rated analyst) also doubled down on a prior Strong Buy rating, and upped his price target from $730 to a Street-high $875. A successful tax season spearheaded the company's "strong Q3," supported by strength across the company's other lines of business, Sills told readers. The analyst added that the results from this tax season show that TurboTax has effectively shifted its focus to the assisted category, where it is expected to sustainably drive growth. Further, Sills noted that Intuit's Business Solutions unit, which includes QuickBooks, recorded a 19.4% growth rate, which "nicely exceeded" their forecast of 18%, indicating that demand for the product is resilient. Intuit shares rank in the top 8% of equities based on a big-picture overview of 115 proprietary factors that correlate with outsized returns, earning it an overall B (Buy) Zen Rating. of equities based on a big-picture overview of 115 proprietary factors that correlate with outsized returns, earning it an overall B (Buy) Zen Rating. Overwhelmingly positive analyst coverage, a significant degree of insider buying, and a string of positive earnings surprises have come together to give INTU a Sentiment Component Grade rating in the top 6% of stocks. However, INTU ranks even more highly in terms of Financials and Artificial Intelligence — in the top 4% and top 1%, respectively. (See all 7 Zen Component Grades here >) What to Do Next?
Yahoo
28-05-2025
- Business
- Yahoo
Semtech's Q1 Earnings Match Estimates, Revenues Increase Y/Y
Semtech Corporation SMTC reported first-quarter fiscal 2026 earnings, wherein the bottom line was in line with the Zacks Consensus Estimate and the top line surpassed the same. SMTC reported first-quarter non-GAAP earnings of 38 cents per share, which matched the Zacks Consensus Estimate. The bottom line exceeded management's guidance of 37 cents per share and showed a robust improvement of more than sixfold from the year-ago quarter's earnings of 6 company's impressive bottom-line performance demonstrated benefits of increased revenues, operational efficiency and effective expense management. Semtech has surpassed the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, while matching the same on one occasion, the average surprise being 10.8%.Semtech's first-quarter fiscal 2026 revenues of $251.1 million beat the Zacks Consensus Estimate by 0.44% and came above the midpoint of management's guidance of $245-$250 million. The top line jumped 22% year over year, with solid growth across all of its end markets, particularly in data company's latest quarterly results are likely to give a fresh boost to its shares. Shares of SMTC have plunged 38.5%, underperforming the Zacks Semiconductor - Analog and Mixed industry's decline of 5.4%. Semtech Corporation price-consensus-eps-surprise-chart | Semtech Corporation Quote SMTC's top-line performance can be attributed to the impressive year-over-year rise in its end from the infrastructure market were $72.8 million (29% of net sales), exhibiting year-over-year growth of 30%. This was driven by solid demand for data centres and continued investment in from the industrial market were $142.8 million (56.9% of net sales), up 24% year over from the high-end consumer market were $35.4 million (14.1% of net sales), up 3% year over year. Strong design-in momentum for SurgeSwitch across multiple device manufacturers, along with broad PerSe proximity sensing deployments and best-in-class low power, sensitivity, and noise rejection, supports top-line growth. Signal Integrity (29.3% of net sales) sales were $73.5 million in the reported quarter, up 26.1% year over year. Analog Mixed Signal & Wireless (36.1% of net sales) sales were $90.6 million, up 20.3% year over System and Connectivity (34.6% of net sales) sales were $86.9 million, up 19.9% on a year-over-year basis. The non-GAAP gross margin of 53.5% expanded 370 basis points (bps) on a year-over-year basis and 30 bps operating expenses of $86.6 million were within SMTC's guidance range. On a year-over-year basis, adjusted operating expenses increased 11.9%.Non-GAAP operating income surged 88.9% year-over-year to $47.6 million. The non-GAAP operating margin improved to 19% from 12.2% reported in the year-ago Balance Sheet & Cash FlowAs of April 27, 2025, cash and cash equivalents were $156.5 million, up from $151.7 million as of Jan. 26, long-term debt was $542.6 million, up from the previous quarter's reported figure of $505.9 the first quarter, Semtech generated operating cash flow and free cash flow of $27.8 million and $26.2 million, respectively. For the second quarter, Semtech expects net sales of $256 million (+/- $5 million). The Zacks Consensus Estimate for the same is pegged at $255.3 million, indicating a year-over-year rise of 18.5%.SMTC expects infrastructure end-market net sales to increase sequentially, driven by data center growth, high-end consumer sales to rise slightly due to typical seasonality and industrial sales to remain flat to slightly down, as moderation in LoRa business to offset IoT cellular non-GAAP gross margin is expected to be 53% (+/- 50 bps). The non-GAAP operating margin is anticipated to be 18.8%.Non-GAAP earnings are expected to be 40 cents (+/- 3 cents) per share. The consensus mark for earnings is pegged at 39 cents per share, indicating a year-over-year rise of 254.6%. The figure remained unchanged over the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, SMTC carries a Zacks Rank #3 (Hold).Paylocity Holding PCTY, StoneCo STNE and BlackBerry BB are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology STNE and BB sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks shares have declined 1% year to date. The Zacks Consensus Estimate for PCTY's full-year 2025 earnings is pegged at $6.95 per share, up by 4.51% over the past 30 days, indicating an increase of 0.99% from the year-ago quarter's reported shares have surged 68.7% year to date. The Zacks Consensus Estimate for STNE's full-year 2025 earnings is pegged at $1.43 per share, up by 3.62% over the past 30 days, indicating a gain of 5.93% from the year-ago quarter's reported shares have gained 9.2% year to date. The Zacks Consensus Estimate for BB's full-year 2025 earnings per share is pegged at 10 cents, unchanged over the past 30 days, indicating a gain of 400% from the year-ago quarter's reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Semtech Corporation (SMTC) : Free Stock Analysis Report Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
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Semtech Corp (SMTC) Q1 2026 Earnings Call Highlights: Record Growth in Data Center Sales and ...
Net Sales: $251.1 million, up 22% year over year. Adjusted Gross Margin: 53.5%, up 30 basis points sequentially and 370 basis points year over year. Adjusted Operating Income: $47.6 million, with an adjusted operating margin of 19%, up 680 basis points year over year. Adjusted EBITDA: $55.4 million, up 68% year over year, with an adjusted EBITDA margin of 22.1%, up 600 basis points year over year. Adjusted Diluted Earnings Per Share: $0.38, up from $0.06 a year ago. Operating Cash Flow: $27.8 million. Free Cash Flow: $26.2 million. Net Debt: Decreased by $14.8 million to $396.2 million. Infrastructure Net Sales: $72.8 million, up 5% sequentially and 30% year over year. Data Center Net Sales: $51.6 million, up 3% sequentially and 143% year over year. High-End Consumer Net Sales: $35.4 million, flat sequentially and up 3% year over year. Industrial Net Sales: $142.8 million, down 3% sequentially and up 24% year over year. LoRa Enabled Solutions Net Sales: $38.9 million, up 5% sequentially and 81% year over year. IoT Systems Hardware Net Sales: $63.5 million, down 8% sequentially and up 31% year over year. Warning! GuruFocus has detected 9 Warning Signs with SMTC. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Semtech Corp (NASDAQ:SMTC) reported Q1 net sales of $251.1 million, exceeding the midpoint of their outlook and marking a 22% year-over-year increase. The company's adjusted gross margin improved to 53.5%, up 370 basis points year over year. Infrastructure net sales grew by 30% year over year, with data center sales reaching a record $51.6 million, up 143% year over year. Semtech's CopperEdge technology offers significant power savings and extended reach, positioning it as a strong solution for next-generation AI clusters. The company has made strides in portfolio optimization and strategic R&D investments, aiming to drive margin expansion and shareholder value. The IoT systems hardware business saw an 8% sequential decline in net sales, although it was still up 31% year over year. Gross margins in the cellular module business were down both quarter-on-quarter and year-on-year, partly due to a mix shift and a one-time inventory event. LoRa net sales are expected to decline slightly in the next quarter, despite strong year-over-year growth. The company faces macroeconomic uncertainties that may impact the timing of some portfolio optimization initiatives. There was a noted air pocket in demand for CopperEdge due to platform changes with an anchor customer, affecting short-term revenue. Q: Can you explain the decline in the cellular module business and the impact on gross margins? A: Hong Hou, President and CEO, explained that the decline was expected due to seasonality in the IoT system product. Despite this, the business is experiencing significant tailwinds from competitors being sanctioned and exits from the IoT cellular business. Mark Lin, CFO, added that the gross margin decline was due to a mix shift towards modules and a one-time inventory event affecting margins. Q: Could you provide more details on the progress and visibility around AI connectivity, specifically CopperEdge? A: Hong Hou stated that CopperEdge has been well-received, with over 20 customer engagements. The product offers advantages like low power consumption and low latency. They expect meaningful design wins and volume ramps by Q4 of this fiscal year. Q: What is the outlook for the LPO and optical business, particularly regarding TIAs and drivers? A: Hong Hou noted that Semtech's TIA is considered the industry gold standard, with design wins across module manufacturers. The LPO is expected to see deployments in the second half of the fiscal year, with the driver being fully compliant with MSA specifications, leading to additional revenue by Q4. Q: How do you see the core data center business trending over the next 6 to 12 months? A: Hong Hou expressed optimism about the FiberEdge product line, which continues to show growth. The company expects accelerated growth in the second half of the year, driven by strong booking activities and increased CapEx spending in the industry. Q: Can you elaborate on the expected performance of LoRa in the coming quarters? A: Mark Lin mentioned that LoRa's Q1 performance was strong, with expectations of a $30 million to $35 million quarterly run rate. The slight decline in Q2 is attributed to project-based spending and customer builds for product launches, but the overall business remains robust. Q: What are the expectations for AI connectivity, specifically CopperEdge, in the coming quarters? A: Hong Hou indicated that while demand from the anchor customer is lower, engagements with other customers are promising. They expect revenue from these engagements to start in Q4 and ramp up in the next fiscal year. Q: How is the company addressing macroeconomic uncertainties and tariff impacts? A: Hong Hou explained that while macroeconomic uncertainties may delay strategic initiatives, the company remains focused on improving business performance and creating shareholder value. Tariff impacts are being mitigated through operational coordination. Q: What is the outlook for the high-end consumer market, particularly regarding the SurgeSwitch product? A: Hong Hou highlighted that SurgeSwitch offers system-level protection and is being designed into multiple customer systems. It provides robust protection for Type-C connectors, which are increasingly used across various industries, offering noticeable ASP improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
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Semtech (SMTC) Q1 Earnings Match Estimates
Semtech (SMTC) came out with quarterly earnings of $0.38 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this chipmaker would post earnings of $0.32 per share when it actually produced earnings of $0.40, delivering a surprise of 25%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Semtech , which belongs to the Zacks Semiconductor - Analog and Mixed industry, posted revenues of $251.1 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.52%. This compares to year-ago revenues of $206.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Semtech shares have lost about 39.7% since the beginning of the year versus the S&P 500's decline of -1.3%. While Semtech has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Semtech: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $255.28 million in revenues for the coming quarter and $1.70 on $1.05 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - Analog and Mixed is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Computer and Technology sector, Nutanix (NTNX), is yet to report results for the quarter ended April 2025. The results are expected to be released on May 28. This enterprise cloud platform services provider is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +35.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Nutanix's revenues are expected to be $626.12 million, up 19.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Semtech Corporation (SMTC) : Free Stock Analysis Report Nutanix (NTNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
Semtech (NASDAQ:SMTC) Reports Q1 In Line With Expectations But Quarterly Revenue Guidance Misses Expectations
Semiconductor company Semtech (NASDAQ:SMTC) met Wall Street's revenue expectations in Q1 CY2025, with sales up 21.8% year on year to $251.1 million. On the other hand, next quarter's revenue guidance of $256 million was less impressive, coming in 1.7% below analysts' estimates. Its non-GAAP profit of $0.38 per share was in line with analysts' consensus estimates. Is now the time to buy Semtech? Find out in our full research report. Revenue: $251.1 million vs analyst estimates of $251 million (21.8% year-on-year growth, in line) Adjusted EPS: $0.38 vs analyst estimates of $0.37 (in line) Adjusted EBITDA: $55.4 million vs analyst estimates of $47.72 million (22.1% margin, 16.1% beat) Revenue Guidance for Q2 CY2025 is $256 million at the midpoint, below analyst estimates of $260.4 million Adjusted EPS guidance for Q2 CY2025 is $0.40 at the midpoint EBITDA guidance for Q2 CY2025 is $56 million at the midpoint, above analyst estimates of $49.2 million Operating Margin: 14.3%, up from 1.5% in the same quarter last year Free Cash Flow was $26.2 million, up from -$1.42 million in the same quarter last year Inventory Days Outstanding: 129, down from 153 in the previous quarter Market Capitalization: $3.23 billion A public company since the late 1960s, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Semtech grew its sales at a solid 11.7% compounded annual growth rate. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Semtech's annualized revenue growth of 9.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. This quarter, Semtech's year-on-year revenue growth of 21.8% was excellent, and its $251.1 million of revenue was in line with Wall Street's estimates. Beyond meeting estimates, we believe the company is still in the early days of an upcycle as this was the third consecutive quarter of growth - a typical upcycle tends to last 8-10 quarters. Company management is currently guiding for a 18.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 1.4% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Semtech's DIO came in at 129, which is 21 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup. We were impressed by Semtech's strong improvement in inventory levels. We were also glad its adjusted operating income outperformed Wall Street's estimates. On the other hand, revenue was just in line this quarter, and revenue guidance for next quarter missed. Overall, this print was mixed. The stock traded down 3.5% to $37.45 immediately after reporting. So do we think Semtech is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
