Chipmaker Semtech beats Q4 profit estimates on strong demand from data centers

Reuters03-17 04:22
Chipmaker Semtech beats Q4 profit estimates on strong demand from data centers

Overview

  • US semiconductor maker's Q4 revenue rose 9% yr/yr to record level

  • Adjusted EPS for Q4 beat analyst expectations

  • Company cites portfolio strength and execution for revenue and earnings growth

Outlook

  • Semtech sees Q1 FY27 net sales at $283 mln, plus or minus $5 mln

  • Company expects Q1 FY27 adjusted diluted EPS of $0.45, plus or minus $0.03

  • Semtech forecasts Q1 FY27 adjusted gross margin at 52.8%, plus or minus 50 bps

Result Drivers

  • DATA CENTER DEMAND - Co said it is benefiting from data center buildout and demand for solutions supporting 800G, 1.6T, and 3.2T era, per CEO Hong Hou

  • R&D INVESTMENT - Co said continued investment in research and development is supporting its position in next-generation interconnect technologies

  • CASH FLOW GENERATION - Co highlighted strong operating and free cash flow, exceeding amounts reported for all of prior fiscal year, per CFO Mark Lin

Company press release: ID:nBw9G88Kxa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Adjusted EPS

Beat

$0.44

$0.43 (13 Analysts)

Q4 EPS

-$0.32

Q4 Adjusted Gross Margin

51.60%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the semiconductors peer group is "buy"

  • Wall Street's median 12-month price target for Semtech Corp is $95.00, about 12% above its March 13 closing price of $84.85

  • The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 35 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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