NASDAQ$SMTC

Semtech Corp. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported unaudited financial results, featuring a net sales decrease and record gross margins.

Semtech reported a decrease in net sales but achieved record GAAP and non-GAAP gross margins. The company is cooperating with the DOJ on the proposed acquisition of Sierra Wireless and issued convertible senior notes.

  • Net sales decreased by 15.1% sequentially and 8.9% year-over-year, reaching $177.6 million.
  • GAAP gross margin reached a record 65.1%, and non-GAAP gross margin also reached a record at 65.5%.
  • GAAP and non-GAAP diluted earnings per share were $0.36 and $0.65, respectively.
  • Tri-Edge was selected by a major North American Hyperscale Data Center Provider for a high volume, multi-year program.

Headline financials

Total Revenue

$178M

Previous: $195M-8.9%
EPS (adj)

$0.65

Previous: $0.74-12.2%
Capital Expenditures

-$22.6M

Previous: -$18.1M-25.2%
Free Cash Flow

$103K

Previous: $16.3M-99.4%
Net Income

$22.7M

Previous: $34.4M-33.9%
Operating Income

$37.4M

Previous: $37.4M-0.1%
Gross Profit

$116M

Previous: $124M-6.6%
Cash & Equivalents

$618M

Previous: $277M+123.4%
Total Assets

$1.47B

Previous: $1.12B+30.8%
Stock-Based Comp

$3.09M

Previous: $17.3M-82.2%

Revenue & EPS history

Semtech · Revenue · Quarterly

$178M

Q3 2023-8.9%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
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 anticipates net sales between $145.0 million and $155.0 million for the fourth fiscal quarter of 2023. The outlook considers transaction costs for the proposed Sierra Wireless acquisition and inflationary pressures, but excludes Sierra Wireless's results.

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 2023

Historical avgQ3 2023

+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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