Semtech Shares Soar After Better-Than-Expected Q4 Results: Details

Semtech Corp. (NASDAQ:SMTC) released its fourth-quarter results after Thursday's closing bell. Here's a look at the details from the report. 

The Details: Semtech reported quarterly earnings of 40 cents per share, which beat the analyst consensus estimate of 32 cents by 25%. Quarterly revenue of $251 million beat the consensus estimate of $249.19 million and is up from $192.94 million from the same period last year.

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For the fourth quarter, Semtech reported:

• Non-GAAP adjusted operating margin of 19.9%, up 160 basis points sequentially.
• Adjusted gross margin of 53.2%, up 80 basis points sequentially.
• Operating cash flow of $33.5 million and free cash flow of $30.9 million.

“Fiscal year 2025 represented a year of positive inflection on many fronts, with sequential improvement for each quarter reported in net sales, gross margin, operating margin and earnings per share,” said Hong Hou, Semtech CEO.

“In the new fiscal year, we are intently focusing on three core priorities to position Semtech for future success: portfolio optimization and simplification, strategic investment in research and development and driving margin expansion, all of which we believe will deliver greater value to our shareholders,” Hou added.

Outlook: Semtech sees first-quarter adjusted earnings of 37 cents per share, plus or minus three cents, versus the 34 cent estimate. The company sees first-quarter revenue of $250 million, plus or minus $5 million, versus the $250.92 million estimate.

SMTC Price Action: According to data from Benzinga Pro, Semtech shares are up 11.43% after-hours at $36.45 Thursday.  

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