Oppenheimer Maintains Perform Following Semtech (SMTC) F1Q Results

Oppenheimer maintains a Perform rating on Semtech Corp. (NASDAQ: SMTC) following F1Q results. SMTC reported sales of $130M, compared to $133M consensus. EPS of $0.27 was just shy of consensus' $0.28 estimate.

Analyst Rick Schafer commented, After the close Wednesday, SMTC reported F1Q (April) sales/EPS of $130M/$0.27, just shy of consensus' $133M/$0.28E, as weakness at Samsung more than offset data center and PON strength. F2Q's (July) revenue outlook of $125M disappointed, as SMTC's protection solutions were the casualty of Samsung's BoM reduction efforts in low/mid-tier smartphones. Positively, traction at China smartphone OEMs appears to be accelerating as sales rose 50-60% Q/Q (albeit off a low base). In addition to Protection, China OEMs are beginning to design-in SMTC's proximity solutions. Gennum continues to be a bright spot, and mgm't expects China LTE builds to re-accelerate into 2HFY16. These opportunities need time to take root, keeping us on the sidelines here."

For an analyst ratings summary and ratings history on Semtech Corp. click here. For more ratings news on Semtech Corp. click here.

Shares of Semtech Corp. closed at $24.62 yesterday.

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