NASDAQ$SMTC

Semtech Corp. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported record net sales and EPS, driven by strong demand in IoT and Infrastructure segments.

Semtech reported record third quarter fiscal year 2022 results, with record net sales of $194.9 million, record GAAP EPS of $0.53, and record non-GAAP EPS of $0.74. The company saw strong demand from the IoT and Infrastructure segments, led by new record net sales by LoRa, 10G PON, and broad-based Protection platforms.

  • Record net sales of $194.9 million, an increase of 5% sequentially and 27% year-over-year.
  • Record GAAP and non-GAAP gross margin of 63.5% and 63.8%, respectively.
  • Record GAAP and non-GAAP diluted earnings per share of $0.53 and $0.74, respectively.
  • Record operating cash flow of $66.5 million or 34.1% of Q3 FY2022 net sales.

Headline financials

Total Revenue

$195M

Previous: $154M+26.5%
EPS (adj)

$0.74

Previous: $0.47+57.4%
Capital Expenditures

-$18.1M

Previous: -$21.8M+17.1%
Free Cash Flow

$16.3M

Previous: -$3.32M+592.2%
Net Income

$34.4M

Previous: $18.5M+86.2%
Operating Income

$37.4M

Previous: $21.5M+74.2%
Gross Profit

$124M

Previous: $94.1M+31.5%
Cash & Equivalents

$277M

Previous: $262M+5.5%
Total Assets

$1.12B

Previous: $1.05B+7.0%
Stock-Based Comp

$17.3M

Previous: $13.5M+28.1%

Revenue & EPS history

Semtech · Revenue · Quarterly

$195M

Q3 2022+26.5%vs Q3 2021
Beat estimate in 16 of 16 quarters(100%)
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

The company expects net sales to be in the range of $184.0 million to $194.0 million and Non-GAAP diluted earnings per share are expected to be in the range of $0.65 to $0.73 for Q4 2022.

Tailwinds

  • GAAP Gross margin is expected to be in the range of 63.1% to 64.1%
  • GAAP SG&A expense is expected to be in the range of $44.0 million to $45.0 million
  • GAAP R&D expense is expected to be in the range of $36.6 million to $37.6 million
  • GAAP Intangible amortization expense is expected to be approximately $1.0 million
  • GAAP Interest and other expense, net is expected to be approximately $1.5 million

Headwinds

  • Potential negative impact to the Company of the ongoing supply chain constraints and any associated disruptions
  • Potential negative impact of the COVID-19 pandemic on the Company's business operations, net sales and operating results
  • Export restrictions may negatively impact the Company’s results of operations from its inability to ship certain products and provide certain support services
  • GAAP Effective tax rate is expected to be in the range of 16% to 18%
  • GAAP Diluted earnings per share are expected to be in the range of $0.42 to $0.50

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 Q3 2022

Historical avgQ3 2022

+1.9%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+4.0%

Avg return

30 days after

63%

43 / 68 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
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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