Semtech Corporation (NASDAQ: SMTC) has reported the adjusted earnings per share of $0.37 in the fourth quarter 2017, beating the analysts’ estimates for the adjusted earnings per share of $0.35. The company had reported the adjusted revenue growth of 12 percent to $140 million in the fourth quarter 2017, beating the analysts’ estimates for revenue of $138.2 million. The company has delivered Q4 results at the upper end of the guidance due to the growth in the enterprise computing, communications, and industrial end-markets.
Oppenheimer analyst Rick Schafer has raised its price target on Semtech Corp. to $42.00 (from $36.00) while maintaining an Outperform rating, as the management’s growth pivot continues, and the company has reported fourth quarter earnings per share and sales above consensus. SMTC has beaten the consensus fifth consecutive times. Three of four segments has increased double-digits Y/Y despite over $4M Note 7 headwind, led by ramping LoRa, optical and protection. In addition to the top-line beat, the management has surprised by raising the GM/OM target model 300bps/250bps respectively. After a couple of transition years, SMTC has grown revenue ~20% Y/Y for two consecutive quarters, while diversifying its business away from Samsung. Looking forward, the company will be ramping optical, LoRa and China handset revenue to drive outsized revenue/earnings growth for the foreseeable.
Bessemer Group Inc. has maintained its stake in shares of Semtech Corporation during the fourth quarter and has holding worth $158,000 at the end of the quarter. BlackRock Japan Co. Ltd has increased its stake in shares of SMTC by 82.3% in the third quarter. BlackRock Japan Co. Ltd now owns 3,720 shares of the company’s stock worth $103,000 after buying an additional 1,679 shares during the period. Ardsley Advisory Partners acquired a new stake in shares of SMTC during the third quarter worth approximately $250,000. Westover Capital Advisors LLC had acquired a new stake in shares of SMTC during the third quarter worth approximately $272,000. Fox Run Management L.L.C. had acquired a new stake in shares of SMTC during the third quarter worth approximately $297,000. Finally, First Trust Advisors LP had acquired a new stake in shares of SMTC during the third quarter worth approximately $305,000. Hedge funds and other institutional investors own 96.74% of the company’s stock.
SMTC stock has risen 62.07% in the last one year (source: Google Finance). According to tipranks.com, 3 analysts has covered the stock while recommending a “Moderate Buy”. SMTC has an average price target of $38.67, which is a further upside of 13.57%.