Shares of Semtech Corporation fell nearly 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.
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.
Meanwhile, United Auto Workers (UAW) president Shawn Fain told members to be ready to implement what the union is calling a “stand-up strike” against the big three Detroit automakers. If a new contract is not reached by Thursday night, when the current UAW contracts expire, union leadership will instruct various chapters to walk out.
The targeted strike will affect certain General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F) and Stellantis NV (NYSE:STLA, EPA:STLA) plants simultaneously. The idea is as bargaining continues, additional chapters can be called upon to “stand up” and join the strike.
Elsewhere, former Starbucks Corp (NASDAQ:SBUX) CEO Howard Schultz is leaving the company’s board of directors, according to a statement released Wednesday. Schultz didn’t offer a reason for his resignation, but the coffee chain said it was part of a planned transition. Schultz, 70, will hold the title of chairman emeritus going forward.
Schultz will be replaced by former Alibaba senior advisor Wei Zhang. Zhang also served as president of Alibaba Pictures Group.