Semtech stock falls nearly 10% after earnings beat, weak guidance
Semtech Corp. shares fell nearly 10% in the extended session Wednesday after the semiconductor company beat earnings and sales expectations but issued guidance that fell well short of Wall Street predictions. The company reported fourth-quarter net income of $13.3 million, or 20 cents a share, compared with losses of $1.3 million, or 2 cents a share, in the year-ago period. Adjusted for items such as stock-based compensation and intangible amortization, among other things, earnings were 55 cents a share. Revenue rose to $160 million from $140.6 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of 55 cents a share on revenue of $158.5 million. For the first quarter, analysts model adjusted earnings of 51 cents a share on sales of $156.2 million. The company said it expects first-quarter adjusted earnings of 30 cents to 36 cents a share and sales of $125 million to $135 million. Semtech stock has gained 59% this year, with the S&P 500 index rising 1%.
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