NASDAQ$SMTC

Semtech Corp. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record results driven by solid growth from all product groups.

Semtech reported a strong start to fiscal year 2023 with record revenues and earnings during the first quarter, driven by solid growth from all of its product groups.

  • Record net sales of $202.1 million, an increase of 6.1% sequentially and 18.7% year-over-year
  • Record GAAP gross margin of 64.4% grew 30bps sequentially and 290bps year-over-year
  • Record GAAP and non-GAAP diluted earnings per share of $0.59 and $0.80, respectively
  • Operating cash flow of $50.1 million or 24.8% of Q1 FY2023 net sales

Headline financials

Total Revenue

$202M

Previous: $170M+18.7%
EPS (adj)

$0.80

Previous: $0.53+50.9%
Capital Expenditures

-$8.32M

Previous: -$5.76M-44.4%
Free Cash Flow

$29.7M

Previous: $17.7M+67.6%
Net Income

$38M

Previous: $23.5M+61.9%
Operating Income

$47.1M

Previous: $28M+68.2%
Gross Profit

$130M

Previous: $105M+24.2%
Cash & Equivalents

$275M

Previous: $258M+6.6%
Total Assets

$1.12B

Previous: $1.07B+4.3%
Stock-Based Comp

$10.9M

Previous: $11.8M-8.0%

Revenue & EPS history

Semtech · Revenue · Quarterly

$202M

Q1 2023+18.7%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Semtech · $291M total across 3 segments · Q1 2027

  • Signal Integrity
    $102M
  • Analog Mixed Signal and Wireless
    $101M
  • IoT Systems and Connectivity
    $88.3M

Forward guidance

Semtech provided GAAP second fiscal quarter 2023 outlook. Net sales are expected to be in the range of $203.0 million to $213.0 million and GAAP Diluted earnings per share is expected to be in the range of $0.79 to $0.89.

Tailwinds

  • Net sales are expected to be in the range of $203.0 million to $213.0 million
  • GAAP Gross margin is expected to be in the range of 64.1% to 65.5%
  • GAAP SG&A expense is expected to be in the range of $45.1 million to $46.1 million
  • GAAP R&D expense is expected to be in the range of $39.5 million to $40.5 million
  • GAAP Diluted earnings per share is expected to be in the range of $0.79 to $0.89

Headwinds

  • The outlook takes into account the impact of the divestiture of the Company's high reliability discrete diodes and assemblies business
  • The outlook takes into account the uncertain, but potential negative impact to the Company of the current supply chain constraints and any associated disruptions
  • The outlook takes into account the ongoing COVID-19 pandemic on global economic conditions and on the Company's business operations, net sales and operating results
  • The outlook takes into account export restrictions
  • The Company is unable to predict the full impact such challenges may have on its future results of operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.8%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+4.0%

Avg return

30 days after

62%

43 / 69 earnings

Positive

+24.0%

Q3 2025

Best reaction

-28.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-4.2%-8.8%
Q4 2026+1.7%-17.3%+15.1%
Q3 2026+2.3%+5.9%+7.9%
Q2 2026+15.2%+13.9%+20.8%
Q1 2026-4.3%-3.3%+15.8%
Q4 2025+21.1%+27.2%-18.7%
Q3 2025+24.0%+25.8%+26.7%
Q2 2025+14.6%+18.3%+28.0%
Q1 2025+1.6%-14.5%-11.7%
Q4 2024+5.4%+1.2%+28.4%
Q3 2024+16.4%+23.6%+22.7%
Q2 2024+10.8%+6.9%-3.5%
Q1 2024+6.5%+3.3%+18.2%
Q4 2023-18.8%-27.3%-37.4%
Q3 2023+1.7%+0.6%-2.1%
Q2 2023-28.2%-26.7%-37.2%
Q1 2023+0.4%-3.0%-18.9%
Q4 2022+9.8%+11.9%-2.2%
Q3 2022+4.1%-0.4%+3.8%
Q2 2022+12.6%+11.8%+12.6%
Q1 2022+3.4%+5.9%+7.5%
Q4 2021-4.7%+0.5%-2.5%
Q3 2021+2.1%+4.5%+6.1%
Q2 2021-4.9%-6.4%-18.2%
Q1 2021+4.9%+7.2%+2.5%
Q4 2020-12.4%-26.5%+17.9%
Q3 2020+0.5%+1.6%+15.9%
Q2 2020-2.9%-2.7%+13.6%
Q1 2020-5.6%-7.9%+10.7%
Q4 2019-4.8%-0.4%-2.8%
Q3 2019+12.9%+13.6%-1.5%
Q2 2019+13.9%+19.7%+11.4%
Q1 2019+8.0%+10.5%+5.0%
Q4 2018+10.7%+13.6%+23.7%
Q3 2018-12.1%-12.8%-11.7%
Q2 2018-0.1%-1.6%-0.3%
Q1 2018-1.3%-3.5%-3.8%
Q4 2017+1.6%+2.4%-0.1%
Q3 2017+2.8%+9.2%+11.5%
Q2 2017+4.7%+6.9%+5.6%
Q1 2017+2.5%+2.6%+0.6%
Q4 2016+5.1%
Q3 2016+0.4%
Q2 2016-2.2%
Q1 2016-8.1%
Q4 2015-12.0%
Q3 2015-1.6%
Q2 2015+7.7%
Q1 2015+8.6%
Q4 2014+3.0%
Q3 2014-4.7%
Q2 2014+0.8%
Q1 2014-3.1%
Q4 2013+8.3%
Q3 2013+11.8%
Q2 2013-1.4%
Q1 2013-0.1%
Q4 2012+0.0%
Q3 2012+0.7%
Q2 2012-6.8%
Q1 2011-4.6%
Q1 2012-1.2%
Q4 2009-1.4%
Q4 2011-1.4%
Q3 2011+1.9%
Q3 2010+1.9%
Q4 2010+4.7%
Q2 2010+4.7%
Q2 2011+4.7%

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