Chipmaker Semtech late Thursday posted mixed results for its fiscal fourth quarter but signaled growing end-market demand. Semtech stock rose in extended trading.
The Camarillo, Calif.-based company lost an adjusted 6 cents a share on sales of $192.9 million in the quarter ended Jan. 28. Analysts polled by FactSet had expected Semtech to lose 4 cents a share on sales of $190.7 million. In the year-earlier period, Semtech earned an adjusted 47 cents a share on sales of $167.5 million.
For the current quarter, Semtech predicted it will break even on an adjusted basis on sales of $200 million. Wall Street had been modeling Semtech to earn an adjusted 2 cents a share on sales of $195.3 million in its fiscal first quarter. In the same quarter last year, it earned an adjusted 2 cents a share on sales of $236.5 million.
"End-market demand for our semiconductor business has progressed from stable to growing," Chief Executive Paul Pickle said in a news release.
He added, "While our hardware business remains constrained, we believe Semtech is well-positioned to benefit from near-term growth trends, particularly in our infrastructure end market."
Semtech Stock Resumes Climb
Semtech makes high-performance networking and connectivity semiconductor products and systems.
In after-hours trading on the stock market today, Semtech stock jumped about 7% to 29.40. During the regular session Thursday, Semtech stock slid 1.3% to close at 27.49.
On Tuesday, Semtech stock surged 13% after Baird analyst Tristan Gerra called it a "hidden gem." On Wednesday, it climbed an additional 10.7%. Gerra rates the stock as outperform with a price target of 40.
'Classic Turnaround Story'
"Semtech is a classic turnaround story," Gerra said. The company has new leadership focused on leveraging its strength in optical networking, he said.
Semtech's CEO joined the company last June from Lantronix. And Chief Financial Officer Mark Lin joined Semtech in October from MKS Instruments.
IBD Stock Checkup ranks Semtech as No. 14 out of 39 stocks in IBD's fabless semiconductor industry group.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
