Semtech Corporation (NASDAQ: SMTC) saw its shares plummet 5.83% in pre-market trading on Tuesday, following the release of its third-quarter earnings report and fourth-quarter guidance. The semiconductor company's stock decline comes as investors grapple with mixed future projections and industry growth concerns, overshadowing the company's better-than-expected Q3 earnings.
For the third quarter, Semtech reported adjusted earnings per share of $0.48, surpassing the analyst consensus estimate of $0.44. This represents a significant 84.62% increase from the same period last year. However, revenue for the quarter came in at $267 million, slightly missing analyst estimates of $268.83 million, despite marking a 12.75% year-over-year growth.
The primary driver behind the stock's pre-market decline appears to be the company's fourth-quarter outlook. Semtech projects Q4 adjusted earnings per share of $0.43, plus or minus $0.03, which falls slightly below the consensus estimate of $0.44. On the revenue front, the company expects $273 million, plus or minus $5 million. This mixed guidance, coupled with potential concerns about future growth prospects in the semiconductor industry, has led to a negative investor reaction despite the solid Q3 performance.
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