Shares of Semtech Corporation fell more than 5% in extended trading Wednesday despite surpassing Street expectations with its fiscal second-quarter results, thanks to weaker-than-expected guidance.
The semiconductor company posted revenue of $238.4 million, up 13.9% year-over-year, and adjusted earnings of $0.11 per share.
Analysts had called for revenue of $237.42 million and earnings of $0.02 per share.
“In the recent quarter, our net sales aligned with our projections and our non-GAAP gross margin and earnings per share each exceeded our estimates, largely due to focused cost-saving initiatives,” CEO Paul H. Pickle said in a statement.
Looking ahead, Semtech guided for third-quarter sales between $190 million to $210 million and an adjusted loss between $0.22 and $0.09 per share. That’s weaker than the $247.68 million and $0.11 per share profit projected by analysts.
“While we remain cautious given the current challenges of broader economic uncertainties and high channel inventory, I am confident that our ongoing operational refinements and strong presence in key markets keep us poised to recover as economic conditions evolve,” Pickle said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel