Roth Capital's Optimistic Forecast for Semtech's FY2025 Earnings

On November 25, 2024, Roth Capital updated its earnings projections for Semtech Corporation (NASDAQ:SMTC), expressing a positive outlook for the fiscal year 2025. Analyst S. Searle has raised the earnings per share (EPS) forecast for Semtech to $0.02, changing from the previous estimate of ($0.01). In contrast, the consensus estimate for Semtech's full-year earnings stands at a loss of ($0.07) per share.

Semtech recently reported its quarterly earnings results, disclosing an EPS of $0.26, which exceeded analysts’ expectations of $0.23 by $0.03. The company generated a revenue of $236.80 million during the quarter, surpassing the consensus estimate of $232.89 million. Despite a negative return on equity of 154.99% and a concerning net margin of 99.08%, Semtech's quarterly revenue saw a significant year-over-year increase of 17.9%. For the same quarter in the prior year, Semtech earned $0.02 per share.

Other investment analysts have also been optimistic about Semtech’s stock. For instance, Needham & Company LLC maintained a “buy” rating and raised its price target to $70.00 from $50.00 in a note released recently. Similarly, Roth MKM increased its target price from $50.00 to $60.00, while B. Riley lifted their target from $61.00 to $85.00, affirming a “buy” recommendation. Additionally, Stifel Nicolaus raised its price objective from $58.00 to $65.00 with a “buy” rating, and Susquehanna upgraded its target from $55.00 to $60.00, labeling the stock as “positive.” Out of thirteen analysts covering Semtech, three have suggested holding the stock, whereas ten recommend buying it. According to MarketBeat.com, the average rating for Semtech is a “Moderate Buy,” and the consensus price target is $67.70.

Current Stock Performance

As of Thursday, Semtech shares opened at $64.04. The stock has seen a 52-week low of $15.63 and a high of $66.64. Semtech currently has a market capitalization of $4.82 billion, with a price-to-earnings ratio of -4.83 and a beta of 1.54. The 50-day moving average price of the stock is $47.00, while the 200-day moving average price stands at $39.47.

Investor Activities

In recent months, various hedge funds have adjusted their stakes in Semtech. Disciplined Growth Investors Inc. MN significantly increased its holdings by 343.3% in the second quarter, acquiring 1,932,116 shares, raising its total to 2,494,985 shares valued at $74,550,000. Driehaus Capital Management LLC also entered a new position in Semtech during the same quarter, worth about $43,395,000. Millennium Management LLC raised its stake by 26.6%, now holding 3,646,449 shares, worth approximately $108,956,000. Whale Rock Capital Management LLC and Clearline Capital LP are among other institutional investors who have established or increased their stakes in Semtech during recent quarters.

About Semtech Corporation

Semtech Corporation focuses on the design, development, manufacture, and marketing of analog and mixed-signal semiconductor products, as well as advanced algorithms. The company offers various signal integrity products, optical data communication solutions, and video transport products, serving multiple industrial and infrastructure applications. Their product portfolio also includes integrated circuits tailored for data centers, enterprise networks, and high-speed interface needs.

Roth, Semtech, Earnings