Semtech Reports Better-Than-Expected Q2 Earnings

Semtech Corp (NASDAQ:SMTC) reported second-quarter financial results after the market close on Monday. Here’s a look at the key details from the report.

Q2 Highlights: Semtech reported second-quarter revenue of $257 million, beating analyst estimates of $256.09 million, according to Benzinga Pro. The semiconductor, IoT systems and cloud connectivity service provider reported second-quarter adjusted earnings of 41 cents per share, beating estimates of 40 cents per share.

Total revenue was up 20% on a year-over-year basis. The company reported GAAP gross margin of 52.1%, up from 49% in the prior year's quarter. Semtech ended the second quarter with $168.6 million in cash and cash equivalents.

“Our second quarter results reflect strong year-over-year financial performance, driven by deep customer engagement, operational discipline, and a culture of excellence,” said Hong Hou, president and CEO of Semtech.

“We believe we are well positioned to capture the high-growth opportunities ahead, supported by targeted investments in our core businesses.”

Semtech expects third-quarter revenue to be in the range of $261 million to $271 million versus estimates of $264.74 million. The company expects third-quarter adjusted earnings to be between 41 cents and 47 cents per share versus estimates of 44 cents per share.

Semtech’s management team will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET.

SMTC Price Action: Semtech shares were volatile following the print. The stock initially traded lower, but was up 0.63% in after-hours, trading at $51.32 at the time of publication Monday, according to Benzinga Pro.

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