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Semtech Shares Surge After Strong Q1 Results and Bullish Q2 Guidance

Record design wins in data-center and LoRa products boosted analyst confidence and lifted investor demand.

Overview

  • Semtech reported first-quarter EPS of $0.51 and revenue of $291 million, both above analyst expectations.
  • The company issued second-quarter guidance for adjusted EPS of $0.59–$0.63 and revenue of $323 million–$333 million, which exceeded street estimates.
  • CEO Hong Hou said the company delivered record quarterly results and expanded design wins in its data-center connectivity and LoRa businesses.
  • Investors pushed the stock higher and shares rose about 9.8% after the report, while analysts at Baird and Needham raised price targets to $225 and $200 respectively.
  • Analysts and management said the mix of data-center wins and LoRa momentum could prompt a near-term re-rating of the stock and affect revenue pacing for the coming quarters.