SMTC Stock Recent News

The headline numbers for Semtech (SMTC) give insight into how the company performed in the quarter ended October 2023, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Semtech (SMTC) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.15 per share. This compares to earnings of $0.65 per share a year ago.

Semtech is a small chip business that has exposure to multiple markets with long-term growth potential. However, at the moment, the company is trying to survive a downturn for its business.

CAMARILLO, Calif.--(BUSINESS WIRE)--Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, announced plans to release the financial results of its third quarter of fiscal year 2024 after the close of the market on Wednesday, Dec. 6, 2023. The results will be released through Business Wire and posted at www.semtech.com. Semtech will host a conference call at 2 p.m. PT (5 p.m. ET) Wednesday, Dec. 6, 2023, to discuss its third qua.

Small cap tech concern, Semtech Corporation, has been hit by a downturn in the semiconductor cycle and an ill-timed acquisition of Sierra Wireless, resulting in violations of its net leverage credit covenants. The company has a new CEO, aggressive cost reduction initiatives, and signs that the semiconductor cycle may be bottoming, as well as recent insider buying in the shares. Semtech's stock has been down sharply, but analysts have mixed opinions on the company's future, with some optimistic about its prospects and others concerned about the acquisition and market demand.

Semtech shares fell to lows not seen since 2015 after the chipmaker and IoT solutions provider told investors it plans to take on $250 million in new debt. The company said Thursday that it intends to offer $250 million in convertible senior notes due in 2028.

Semtech announced Thursday that it will take on $250 million in new debt. The company will use the money raised by selling that new debt to pay off old debt.

Semtech (SMTC) reported earnings 30 days ago. What's next for the stock?

We're initiating Semtech Corporation with a buy rating. We think the macro weakness has been priced into the stock and its near-term outlook. We now believe the inventory correction for Semtech Corporation's IoT products, accounting for ~50% of sales, will be completed in 2H23, and expect the recovery in 1HCY24 to drive top line growth. Additionally, we think the Signal Integrity and Protection inventory correction is now behind us, with the segments growing 35% and 12% QoQ, respectively, this quarter, accounting for 40% of sales.

Semtech (SMTC) partners with Coherent to demonstrate FiberEdge 200G PAM4 MZM driver, deploying 200G per lane using advanced optics.