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On Wednesday, December 02, Semtech (NASDAQ:SMTC) will release its latest earnings report. Check out Benzinga's preview to understand the implications.
Net Income, Earnings, And Earnings Per Share
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Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Based on management's projections, Semtech analysts model for earnings of $0.46 per share on sales of $149.83 million. Semtech EPS in the same period a year ago totaled $0.41. Revenue was $141.01 million.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 12.2%. Sales would be up 6.25% on a year-over-year basis. Semtech's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q2 2020 | Q1 2020 | Q4 2020 | Q3 2019 |
|---|---|---|---|---|
| EPS Estimate | 0.41 | 0.32 | 0.36 | 0.40 |
| EPS Actual | 0.43 | 0.35 | 0.40 | 0.41 |
| Revenue Estimate | 141.76 M | 129.28 M | 134.84 M | 140.41 M |
| Revenue Actual | 143.66 M | 132.70 M | 138.00 M | 141.01 M |
Stock Performance
Shares of Semtech were trading at $67.47 as of November 30. Over the last 52-week period, shares are up 44.18%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Semtech is scheduled to hold the call at 17:00:00 ET and can be accessed here.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.