Semtech (NASDAQ:SMTC) Reports Q4 In Line With Expectations, Stock Jumps 11.2%
Semiconductor company Semtech (NASDAQ:SMTC) met Wall Street’s revenue expectations in Q4 CY2024, with sales up 30.1% year on year to $251 million. On the other hand, next quarter’s revenue guidance of $250 million was less impressive, coming in 2.5% below analysts’ estimates. Its non-GAAP profit of $0.40 per share was 25.6% above analysts’ consensus estimates.
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Semtech (SMTC) Q4 CY2024 Highlights:
Company Overview
A public company since the late 1960s, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.
Semiconductor Manufacturing
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Semtech’s sales grew at a solid 10.7% compounded annual growth rate over the last five years. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Semtech’s annualized revenue growth of 9.6% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.
