Semtech's FY2025 EPS Forecast Adjusted Upward by Northland Capmk

Semtech Co. (NASDAQ:SMTC) has recently received a positive adjustment to its FY2025 earnings per share (EPS) forecast. This update was announced by analysts at Northland Capmk in a research report released on December 10th. Analyst G. Richard raised the EPS expectation from a previous estimate of $0.03 to $0.08, signaling increased confidence in the semiconductor company's performance.

Current consensus estimates place Semtech's full-year earnings at a loss of ($0.02) per share. Looking ahead, Northland Capmk also outlined projections for Semtech's future quarterly earnings. They anticipate earnings of $0.16 for Q4 2025, $0.15 for Q1 2026, $0.20 for Q2 2026, $0.34 for Q3 2026, and $0.44 for Q4 2026. For FY2026, they forecast earnings to reach $1.13 per share and $1.83 for FY2027.

Recent Performance Overview

Semtech's latest quarterly earnings report, released on November 25th, showcased a performance that exceeded analysts' expectations. The company reported an EPS of $0.26, surpassing the consensus estimate of $0.23 by $0.03. However, the company's net margin remains quite low at -99.08%, and it has also experienced a negative return on equity of 154.99%.

In terms of revenue, Semtech generated $236.80 million in the most recent quarter, exceeding the forecasted $232.89 million. This indicates a year-over-year revenue growth of 17.9%, although the same quarter last year saw a substantially lower EPS of $0.02.

Analysts' Recommendations and Price Target Adjustments

Several other research firms have also weighed in on Semtech's stock. Stifel Nicolaus lifted their price target from $58.00 to $65.00 while maintaining a 'buy' rating. Meanwhile, Needham & Company reiterated a 'buy' rating and raised their price objective from $50.00 to $70.00. Roth MKM increased their price target to $60.00, also giving an encouraging 'buy' rating. Additionally, B. Riley adjusted their price objective significantly from $61.00 to $85.00.

Interestingly, Northland Securities increased their price target for Semtech from $60.00 to $66.00, aligning with the overall positive outlook for the company. Currently, the stock has an overall rating of 'Moderate Buy' with an average price target of $68.30, reflecting strong interest among investors and analysts alike.

Stock Performance and Market Insights

On a recent trading day, Semtech shares opened at $64.11. The stock's performance over time has shown a significant increase, with a one-year low of $18.16 and a high of $70.27. The market capitalization stands at $4.85 billion with a P/E ratio of -4.91, indicating the challenges faced by the company.

Investor Activity and Semtech Background

Institutional investors have also shown interest in Semtech. Recent activity includes Mutual of America Capital Management increasing their holdings by 6.3%, ultimately owning 11,285 shares. Other firms, such as Intech Investment Management and Natixis Advisors, have also increased their stakes in the company.

Semtech Corporation is known for its design and production of analog and mixed-signal semiconductors. The company's offerings are crucial in various sectors, including data communications and industrial applications, showcasing its role in the technology landscape.

Semtech, Forecast, Analyst