Semtech's stock pops after sales hike shows business has 'progressed from stable to growing'
By Jon Swartz
Semtech Corp.'s stock initially soared 17% before cooling a bit in extended trading Thursday after the company rang up better-than-expected sales and strong sales guidance for its current quarter.
"End-market demand for our semiconductor business has progressed from stable to growing," Chief Executive Paul H. Pickle said in a statement announcing the generally positive results.
The chip maker, called a "hidden gem" by a Baird analyst earlier this week, posted a fiscal fourth-quarter operating loss of $620 million, or $9.98 a share, compared with an operating loss of $12.4 million, or 60 cents a share, in the same quarter a year ago. Adjusted earnings were a loss of 6 cents a share.
Net sales were $192.9 million, down from $200.9 million in the year-ago quarter.
Analysts surveyed by FactSet had expected on average a net loss of 4 cents a share on revenue of $190.7 million.
Semtech provided first-quarter net sales guidance of $200 million, while FactSet analysts are forecasting $195.3 million.
Shares of Semtech (SMTC) have jumped 26% so far this year, while the broader S&P 500 index SPX is up 30%.
-Jon Swartz
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03-28-24 1647ET
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