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Market Overview

Semtech's Earnings Outlook

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Semtech (NASDAQ:SMTC) announces its next round of earnings this Wednesday, March 17. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

What Are Earnings, Net Income, 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

Semtech earnings will be near $0.48 per share on sales of $158.29 million, according to analysts. Semtech EPS in the same period a year ago totaled $0.4. Sales were $138.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 20.0%. Revenue would be have grown 14.7% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.46 0.41 0.32 0.36
EPS Actual 0.47 0.43 0.35 0.40
Revenue Estimate 149.83 M 141.76 M 129.28 M 134.84 M
Revenue Actual 154.08 M 143.66 M 132.70 M 138.00 M

Stock Performance

Shares of Semtech were trading at $70.57 as of March 15. Over the last 52-week period, shares are up 135.44%. Given that these returns are generally positive, long-term shareholders should be content 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: BZI-EPEarnings