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Semtech stock climbs after 4Q earnings beat Street expectations

CEO Mohan Maheswaran says ‘growth drivers’ in the Internet of Things, data center and mobile markets should drive a second-half rebound

A generic representation of semiconductors
The California company develops and markets analog and mixed-signal semiconductor products

Semtech Corporation (NASDAQ:SMTC) stock climbed Friday after the company, which develops and markets analog and mixed-signal semiconductor products, reported fourth-quarter earnings that beat Wall Street estimates on strong revenue.

Investors sent shares in the Camarillo, California company up 6.14% to $55.17.

Semtech posted fourth-quarter January 2019 earnings of $0.55 per share on revenue of $160 million. The consensus earnings estimate was $0.54 per share on revenue of $159.8 million. Revenue grew 13.8% on a year-over-year basis.

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The semiconductor chip supplier said it expects first-quarter earnings of $0.30 to $0.36 per share on revenue of $125.0 million to $135.0 million.

“We are proud to deliver fourth quarter results that were in-line with our guidance despite the challenging environment,” said Semtech Corporation CEO Mohan Maheswaran in a statement. “We are also pleased to deliver a record financial performance for FY2019 with net sales growth of 7% year-on-year and earnings growth of nearly 2x net sales.”

Maheswaran said that while the near-term visibility is impacted by “China demand softness,” as well as weakness from both the smartphone and data center end markets, it believes the long-term sustainability of its growth drivers in the “IoT, data center and mobile markets should drive a second-half rebound.”

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

 

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