Semtech (NASDAQ:SMTC) Releases Q3 2027 Earnings Guidance

Semtech (NASDAQ:SMTC) issued an update on its third quarter 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.020-1.080 for the period, compared to the consensus EPS estimate of 0.690. The company issued revenue guidance of $405.0 million-$415.0 million, compared to the consensus revenue estimate of $359.3 million.

Wall Street Analysts Forecast Growth

SMTC has been the subject of a number of recent research reports. Northland Securities lowered Semtech from an “outperform” rating to a “market perform” rating in a report on Tuesday, May 26th. Citigroup lowered Semtech from a “buy” rating to a “market perform” rating in a research report on Tuesday, May 26th. Mizuho set a $225.00 price objective on Semtech in a research report on Wednesday, May 27th. UBS Group upped their target price on shares of Semtech from $165.00 to $225.00 and gave the stock a “buy” rating in a research note on Wednesday, May 27th. Finally, TD Cowen lifted their price target on shares of Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. Fourteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Semtech has an average rating of “Moderate Buy” and an average price target of $198.00.

Semtech Stock Up 5.5%

Shares of NASDAQ:SMTC opened at $127.52 on Wednesday. The firm has a 50 day simple moving average of $136.12 and a 200-day simple moving average of $118.21. Semtech has a twelve month low of $53.62 and a twelve month high of $177.35. The company has a current ratio of 2.37, a quick ratio of 1.62 and a debt-to-equity ratio of 0.86. The company has a market capitalization of $11.88 billion, a PE ratio of -326.97 and a beta of 2.35.

Semtech (NASDAQ:SMTC) last posted its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The firm had revenue of $341.90 million for the quarter, compared to the consensus estimate of $328.67 million. During the same period last year, the firm posted $0.41 EPS. The company’s revenue was up 32.7% on a year-over-year basis. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, equities analysts predict that Semtech will post 1.81 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider John Michael Wilson sold 5,500 shares of the business’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $170.00, for a total value of $935,000.00. Following the completion of the sale, the insider directly owned 80,876 shares of the company’s stock, valued at approximately $13,748,920. The trade was a 6.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Mark Lin sold 970 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the completion of the sale, the chief financial officer directly owned 34,896 shares of the company’s stock, valued at approximately $5,248,707.36. This trade represents a 2.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,734 shares of company stock valued at $3,133,986 over the last ninety days. Company insiders own 0.44% of the company’s stock.

Key Headlines Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech reported second-quarter revenue of $341.9 million, up 32.7% year over year and ahead of the roughly $328.7 million consensus estimate. Adjusted earnings of $0.71 per share also topped estimates near $0.61–$0.62, compared with $0.41 a year earlier. Semtech Announces Second Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Management’s fiscal third-quarter outlook was the major catalyst: revenue is forecast at approximately $405 million–$415 million (about $410 million midpoint), versus analyst expectations near $359 million, while adjusted EPS guidance of $1.02–$1.08 is well above the approximately $0.69 consensus. Semtech perks up as Q2 results, guidance top estimates
• Positive Sentiment: The quarter showed improving operating momentum, including record sales, stronger operating income, healthy gross margins and positive free cash flow. Investor attention is also focused on potential AI-related demand, including the ramp of next-generation 1.6-terabit networking products and constrained gallium nitride capacity. Will Semtech’s Q2 Earnings Tonight Send Its Stock Higher?
• Neutral Sentiment: Management continues to highlight LoRa growth and a broader shift toward AI data-center infrastructure and connected IoT applications, but the durability of these trends will depend on customer adoption and execution. Semtech: Is a Bigger Business Shift Taking Shape?
• Negative Sentiment: Recent insider-trading data showed multiple executives selling shares and no reported insider purchases over the past six months. These transactions may create a modest sentiment overhang, although they do not offset the strong earnings and guidance surprise. Semtech Posts Record $341.9 Million Sales in Fiscal Q2

Institutional Investors Weigh In On Semtech

Large investors have recently modified their holdings of the company. Think Investments LP acquired a new position in shares of Semtech in the 3rd quarter valued at $58,618,000. Ameriprise Financial Inc. boosted its stake in Semtech by 10.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after purchasing an additional 666,456 shares during the period. Atreides Management LP purchased a new position in Semtech during the 2nd quarter worth $29,880,000. Whale Rock Capital Management LLC increased its stake in Semtech by 11.3% in the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock valued at $287,499,000 after purchasing an additional 396,504 shares during the period. Finally, T. Rowe Price Investment Management Inc. increased its stake in Semtech by 23.2% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,987,888 shares of the semiconductor company’s stock valued at $146,488,000 after purchasing an additional 374,548 shares during the period.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.