Semtech Corporation’s shares rose nearly 3% in after-hours trading after the semiconductor company reported stronger-than-expected second-quarter results and raised its third-quarter guidance.
The company posted adjusted earnings per share of $0.71 for the quarter ended July 31, exceeding the Wall Street consensus of $0.61. Revenue totaled $341.9 million, a 33% increase from $257.6 million in the same period last year and above the $328.64 million estimate. Adjusted gross margin reached 54.5%, while adjusted operating margin expanded to 24.4%, up from 20.4% in the prior quarter.
For the current quarter, Semtech guided adjusted EPS to $1.02-$1.08, with a midpoint of $1.05, far surpassing the $0.73 consensus. Revenue is projected between $405 million and $415 million, with a midpoint of $410 million, well above the $379 million estimate. Adjusted operating margin is expected to reach 31.0%, plus or minus 60 basis points.
Hong Hou, president and CEO, said the company delivered record revenue across key areas and improved earnings leverage. He highlighted accelerating bookings and a record backlog as indicators of sustained growth into the next fiscal year.
