Chipmaker Semtech late Wednesday edged above analyst expectations for its fiscal fourth quarter and predicted accelerating growth for the current period. SMTC stock rose in extended trading.
The Camarillo, Calif.-based company earned an adjusted 70 cents a share on sales of $190.6 million in the quarter ended Jan. 30. Analysts had expected Semtech earnings of 69 cents a share on sales of $189.3 million, according to FactSet. On a year-over-year basis, Semtech earnings rose 37% while sales increased 16%.
For the current quarter, Semtech forecasts adjusted earnings of 76 cents a share on sales of $200 million. That's based on the midpoint of its guidance. Wall Street was projecting earnings of 70 cents a share on sales of $192.3 million in the company's fiscal first quarter. Semtech's outlook would translate to year-over-year growth of 43% in earnings and 17% in sales.
Chief Executive Mohan Maheswaran credited sales of semiconductor systems for Internet of Things applications like remote sensing and analytics for its outperformance.
"We believe these secular growth drivers will be the foundation for multiyear revenue growth for the company," he said in a news release.
SMTC Stock Ranks In Middle Of Pack
In after-hours trading on the stock market today, SMTC stock increased 4.1%, near 69.40. During the regular session Wednesday, SMTC stock surged 5.4% to close at 66.66.
Semtech makes analog and mixed signal semiconductor products and advanced algorithms for infrastructure, high-end consumer and industrial equipment. Its products are used in a wide variety of communication, computer and industrial applications.
A key focus area for Semtech is LoRa technology for Internet of Things applications. LoRa, short for "long range," is a low-power, wide-area-network wireless technology.
SMTC stock ranks No. 15 out of 30 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has a middling IBD Composite Rating of 64 out of 99. Also, the fabless chipmaker group ranks No. 120 out of 197 industry groups that IBD tracks. IBD trading guidelines recommend focusing on top-rated stocks in leading industry groups.
Elsewhere among semiconductor stocks, Rambus broke out of a cup-with-handle base at a buy point of 28.32, according to IBD MarketSmith charts. Rambus stock ended the regular session Wednesday up 4.1% to 29.01.
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