Unpacking Q3 Earnings: Semtech (NASDAQ:SMTC) In The Context Of Other Semiconductor Manufacturing Stocks

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Unpacking Q3 Earnings: Semtech (NASDAQ:SMTC) In The Context Of Other Semiconductor Manufacturing Stocks

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Semtech (NASDAQ:SMTC) and the rest of the semiconductor manufacturing stocks fared in Q3.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 1.3% below.

In light of this news, share prices of the companies have held steady as they are up 1.5% on average since the latest earnings results.

Semtech (NASDAQ:SMTC)

A public company since the late 1960s, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.

Semtech reported revenues of $236.8 million, up 17.9% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

"We are very pleased to report broad-based growth across each of our end markets, and particularly in data center, where we project AI-driven product demand to be a long-term and transformational growth engine for Semtech. Our results validate that our customers and target markets are moving toward us and highlight the effectiveness of our initiatives to drive market share gain and SAM expansion," said Hong Hou, Semtech's president and chief executive officer.

Semtech Total Revenue
Semtech Total Revenue

Interestingly, the stock is up 24% since reporting and currently trades at $66.62.

Is now the time to buy Semtech? Access our full analysis of the earnings results here, it’s free.

Best Q3: Marvell Technology (NASDAQ:MRVL)

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.


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