Semtech Corporation (NASDAQ: SMTC) stock falls over 3.3% during August 31st, 2017 as their top line missed estimates. The group reported a net sales rise of 13% on a yoy basis during the second quarter of 2018 and a 6% rise on a quarter over quarter basis. Non-GAAP net sales enhanced 15% on a yoy basis.
Their Distributer Point of Sale (POS) showed a strong quarterly performance, while Wireless and Sensing Products Group net sales surged 59% on a yoy basis. Protection Products Group net sales surged 24% on a yoy basis. Cash flow from Operations surged 244% on a quarterly basis. The group acquired AptoVision, in the exciting for HD Video over IP market.
For the third Quarter of Fiscal Year 2018, GAAP net sales are forecasted to be in the range of $145.0 million to $153.0 million while Gross margin is forecasted to be in the range of 59.0% to 60.0%. Earnings per diluted share are forecasted to be in the range of $0.18 to $0.22. For full year, the group expects a Non-GAAP net sales to be in the range of $152.0 million to $160.0 million while Non-GAAP gross margin is forecasted to be in the range of 61.0% to 61.8%. FactSet analysts were forecasting 47 cents a share on revenue of $155.6 million.
The group announced LORIOT and Tangerine Electronics which are collaborating on a Low Power Wide Area Network (LPWAN), based on Semtech’s LoRa devices and wireless RF technology (LoRa Technology), in Mexico. This network, based on the LoRaWAN™ protocol, is forecasted to be deployed nationwide and Tangerine Electronics would host an on-premise LORIOT server in Mexico City to offer citizens with reliable and secure Internet of Things (IoT) connectivity.
Semtech Corporation stock generated over 19.7% in this year to date (as of 9:56AM EDT on August 31st, 2017; Source: Google finance). SMTC stock has 18.5% upside with a target price of $43.80 (based on five analysts in tipranks.com)