Overview

• US semiconductor supplier's fiscal Q1 net sales rose 16% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company cites expanding design wins in data center and LoRa businesses as growth drivers

Outlook

• Semtech sees Q2 net sales at $328.0 mln +/- $5.0 mln

• Company expects Q2 adjusted diluted EPS of $0.61 +/- $0.02

• Semtech expects data center growth to accelerate throughout fiscal 2027

Result Drivers

• DATA CENTER & LoRa DEMAND - Co said expanding design wins in data center and LoRa businesses drove growth

• PRODUCT LAUNCHES - FiberEdge and CopperEdge 1.6T revenues contributed to growth, per CEO Hong Hou

• OPERATING LEVERAGE - Improved profitability attributed to operating leverage and strong operational fundamentals, per CFO Mark Lin

Company press release: ID:nBw24z9MBa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Sales	Beat	$291 mln	$283.45 mln (12 Analysts)
Q1 Adjusted EPS	Beat	$0.51	$0.45 (13 Analysts)
Q1 EPS		$0.27
Q1 Adjusted Gross Margin		53.00%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Semtech Corp is $150.00, about 4.3% below its May 22 closing price of $156.78

• The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 37 three months ago

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