Semtech (SMTC) climbs as Q4 revenue and guidance surpass expectations

Semtech (NASDAQ: SMTC) saw its shares jump more than 8% in after-hours trading Thursday after the semiconductor company issued upbeat guidance for the fiscal Q1 2025 and beat Q4 2024 expectations for revenue.

For the fiscal Q4 2024, Semtech posted a loss per share of $0.06, falling short of analysts' expectations, who had projected a smaller loss of $0.04. The company's revenue for the quarter stood at $192.9 million, surpassing the anticipated consensus of $190.72 million.

The non-GAAP gross margin reached 48.9%, exceeding the midpoint of the company's provided guidance, and topping the estimated 48%.

Looking ahead, for the first quarter of 2025, Semtech forecasts its EPS to break even at $0.00, slightly below the consensus forecast of $0.01.

Moreover, the company anticipates its revenue to be around $200 million for the quarter, which is higher than the expected consensus of $195.3.

"Working capital improvements contributed to positive operating and free cash flows for the fourth quarter, and we completed an optional principal prepayment on our credit facility," said Mark Lin, Semtech's executive vice president and CFO.

"We went live on a single ERP at the beginning of the first quarter of fiscal year 2025, which we expect will increase efficiencies and enhance internal controls."

By Vahid Karaahmetovic

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