Chipmaker Semtech late Wednesday topped analyst estimates for its fiscal first quarter. The company also predicted higher-than-expected earnings on in-line sales for the current period. SMTC stock rose in extended trading.
The Camarillo, Calif.-based company earned an adjusted 80 cents a share on sales of $202.1 million in the quarter ended May 1. Analysts polled by FactSet expected Semtech earnings of 76 cents a share on sales of $200 million. On a year-over-year basis, Semtech earnings rose 51% while sales increased 19%.
For the current quarter, Semtech forecast adjusted earnings of 85 cents a share on sales of $208 million. That's based on the midpoint of its outlook. Wall Street had predicted earnings of 83 cents a share on sales of $208 million. In the year-earlier period, Semtech earned 65 cents a share on sales of $185 million.
"Our fiscal year 2023 is off to a very strong start driven by solid growth from all of our product groups," Chief Executive Mohan Maheswaran said in a news release.
SMTC Stock Rises Late
"We believe that our strategy of developing advanced technology platforms targeted at enabling a smarter planet will continue to drive sustainable top- and bottom-line growth for years to come," Maheswaran said.
In after-hours trading on the stock market today, SMTC stock climbed 2.4% to 65.94. During the regular session Wednesday, SMTC stock advanced 0.5% to close at 64.38.
Semtech makes analog and mixed-signal semiconductor products and advanced algorithms for infrastructure, high-end consumer and industrial equipment. Its products are used in a wide variety of communication, computer and industrial applications.
A key focus area for Semtech is LoRa technology for Internet of Things applications. LoRa, short for "long range," is a low-power, wide-area-network wireless technology.
Ambarella Stock Falls After Report
Elsewhere in the semiconductor sector, Ambarella stock fell on Wednesday after the chipmaker beat first-quarter goals but disappointed with its sales guidance. Ambarella stock declined 2.1% to 83.41 on the news.
The Santa Clara, Calif.-based company earned an adjusted 44 cents a share on sales of $90.3 million in its fiscal first quarter ended April 30. Analysts polled by FactSet expected Ambarella earnings of 37 cents a share on sales of $90 million. On a year-over-year basis, Ambarella earnings surged 91% while sales climbed 29%.
For the current quarter ending July 31, Ambarella forecast revenue of $80 million, based on the midpoint of its outlook. Wall Street had predicted sales of $91.5 million. The company blamed supply-chain issues in Asia for the shortfall.
SMTC stock ranks No. 11 out of 34 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. Ambarella ranks No. 18 in the group.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
