Semtech reported first quarter results that exceeded analyst expectations and issued second quarter guidance well above consensus, sending shares up 6.4%.
The semiconductor company posted adjusted earnings per share of $0.51 for the first quarter of fiscal 2027, beating the analyst estimate of $0.45 by $0.06. Revenue reached a record $291.0 million, surpassing the consensus estimate of $283.44 million and marking a 16% increase YoY from $251.1 million in the prior year period.
The company guided second quarter adjusted EPS of $0.59-$0.63, with a midpoint of $0.61 significantly above the analyst consensus of $0.51. Revenue guidance of $323-333 million, with a midpoint of $328.0 million, also exceeded the consensus estimate of $300.7 million by a substantial margin.
"Semtech is off to an exceptional start in fiscal year 2027, delivering record quarterly results and expanding design wins across our data center and LoRa businesses," said Hong Hou, president and chief executive officer. "As FiberEdge and CopperEdge 1.6T revenues layer onto our strong growth base, we expect data center growth to accelerate throughout the year."
The company reported GAAP gross margin of 52.0% and adjusted gross margin of 53.0% for the quarter. Adjusted operating margin reached 20.4%, up from 18.2% in the prior quarter. GAAP diluted earnings per share came in at $0.27, up 23% YoY from $0.22.
For the second quarter, Semtech expects adjusted gross margin of approximately 54.0% and adjusted operating margin of around 21.9%. The company projected adjusted EBITDA of $79.2 million, representing a 24.2% margin.
