Market Overview

Semtech Earnings Preview

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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

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.

 

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Posted-In: Earnings