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Semtech shares surge after Q2 revenue growth and guidance raise
Semtech reported 32.5% Q2 revenue growth and lifted its outlook to a $410 million revenue midpoint and $1.05 in adjusted EPS.
Semtech Corporation shares moved higher after the company reported Q2 results that beat expectations and raised full guidance, according to MarketBeat Ratings. The outlet said the post-earnings momentum suggests the market is increasingly treating the stock as having bottomed out.
MarketBeat Ratings attributed the rally to accelerating revenue growth and improving profitability. The company posted more than 32.5% revenue growth, and it reportedly beat the analysts' high bar by over 400 basis points.
By segment, the outlet said Infrastructure grew 69%, driven by a 39% rise in Data Center and a 64% increase in Signal Integrity. It also said High-End Consumer declined 5%, while Industrial rose 25%.
On margins and earnings, MarketBeat Ratings cited a 560 basis point increase in adjusted operating margin and a 73% jump in adjusted earnings, with adjusted EPS of 71 cents beating consensus by more than 1,000 basis points. For its outlook, the company forecast a midpoint of $410 million in revenue and $1.05 in adjusted EPS, both above consensus, while still noting debt remains and further balance sheet work is needed.