Semtech (NASDAQ:SMTC) posted stronger-than-expected third-quarter results on Monday, though the upbeat earnings failed to lift investor sentiment, with shares sliding 6% in after-hours trading.

For the quarter ended October 26, the chipmaker delivered adjusted earnings of $0.48 per share on revenue of $267 million. Both figures came in just ahead of analysts’ forecasts, which called for $0.45 per share in adjusted profit and $266.4 million in sales.

Looking ahead, Semtech expects adjusted earnings of roughly $0.43 per share at the midpoint of guidance for the current quarter, with revenue projected to reach $273 million. Wall Street had anticipated $0.44 per share and $265.9 million, respectively.

Analysts at Stifel said the company appears to be tightening its strategic focus, devoting capital and R&D more heavily toward its data center, industrial IoT, and high-end consumer segments.

They noted that by doubling down on these higher-growth businesses — and potentially exiting its lower-margin Canadian wireless communications unit — “we believe Semtech is enriching its operating model, resulting in a streamlined product portfolio levered towards secular trends including artificial intelligence infrastructure, industrial automation, and advanced consumer connectivity.”

Semtech Corporation stock price

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.