Shares of Lattice Semiconductor Corporation (NASDAQ: LSCC) plummeted by nearly 17.5% in pre-market trading on November 5th, 2024, after the company reported its third-quarter earnings results and provided weaker-than-expected guidance for the fourth quarter.
While Lattice's Q3 earnings of $0.24 per share met analysts' expectations, and revenue of $127.1 million was roughly in line with estimates, the company's guidance for the fourth quarter fell short of Wall Street's projections. For the fourth quarter, Lattice guided for earnings per share in the range of $0.15 to $0.23, lower than the consensus estimate of $0.26. Additionally, the company projected revenue of $112 million to $122 million, significantly below the $132 million analysts had anticipated.
The disappointing guidance was compounded by Lattice's announcement of a 14% reduction in its workforce as part of cost-cutting measures. The company also reported a one-time charge of $6.5 million related to these cost-cutting actions.
Analysts reacted swiftly to the news, with several firms lowering their price targets on the stock. TD Cowen trimmed its target to $50 from $60, citing the disappointing forecast. "Numbers across the board are likely revised lower as the company resets expectations for next year," the brokerage firm noted.
Susquehanna also cut its price target on Lattice Semiconductor to $55 from $65, while Raymond James lowered its target to $52 from $55. Despite the downgrades, the majority of analysts maintained a "Buy" or equivalent rating on the stock, with a median price target of $54.
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