Semtech Corporation | $SMTC Stock | Shares Shoot Up On Better Than Expected Q4 Earnings

Semtech Corporation

Semtech Corporation (NASDAQ: SMTC)


Semtech Corporation (SMTC), a company that markets analog and mixed-signal semiconductor products yesterday reported their fiscal fourth quarter 2017 financial results.

Semtech reported fourth quarter adjusted earnings of $0.37 per share which beat analyst projections of $0.35 per share. Semtech reported fourth quarter revenues of $140 million which beat analyst expectations of $138.2 million.  


Semtech Corporation CEO’s Comments

Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated, “We were pleased to deliver better than seasonal Q4 results that were once again at the upper end of our guidance led by growth in the enterprise computing, communications and industrial end-markets.  The Company grew FY2017 non-GAAP net sales 12% over the prior year while delivering non-GAAP earnings growth at more than 5 times that rate by maintaining non-GAAP gross margins at the upper end of our target range and through Opex discipline.  We enter FY2018 with tremendous momentum driven by our growth markets that include IoT, hyper-scale datacenters and mobile devices which should continue to drive our growth and help the Company to outperform the Industry and peers.”  Globe Newswire


SMTC Technical Analysis

Semtech Corporation

SMTC opened trading yesterday at $33.80 which was up from the previous day’s trading close of $33.50. Shares closed trading yesterday at $34.30 and spiked up after market to $36.75, equivalent to a 7% increase from the closing price. Taking a look at the daily chart we can see that the last time SMTC traded above these levels we have to go all the way back to May 26th 2013, when it traded at highs of $36.85.

Taking a closer look at the daily chart we can see that before the spike up SMTC had already been in an overall upward trend dating back to November 2nd,  when it traded at $23.95. SMTC has a float of 64.82 million shares and traded 2.16 times the normal daily trading volume on Wednesday.

For trading purposes, I would like to see SMTC open trading on Thursday above $36.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products. The company provides signal integrity products, including a portfolio of optical communications, broadcast video, surveillance video, active cable transceiver, and backplane products used in various enterprise computing, industrial, communications, and high-end consumer applications; and proprietary advanced wired communication and ultra-high speed serializer/deserializer products for use in long-haul optical transport communication.

It also offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and wireless and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products used in industrial and consumer applications.

In addition, the company provides power products consisting of switching voltage regulators, combination switching and linear regulators, smart regulators, charge pumps, and wireless charging that control, alter, regulate, and condition the power within electronic systems; and discrete semiconductor products, including rectifiers, assemblies, and other products for use in industrial, military, medical, automotive, and aerospace applications, as well as defense systems, such as satellite communications.

It primarily serves original equipment manufacturers and their subcontractors. The company sells its products directly, as well as through independent sales representative firms and independent distributors in the Asia Pacific, Europe, and North America. Semtech Corporation has a strategic agreement with MultiPhy Ltd. The company was founded in 1960 and is headquartered in Camarillo, California. Yahoo Finance