Shares of Semtech dropped on Wednesday after the company released its third-quarter guidance, which fell short of Wall Street’s expectations.
Stock Performance
The stock experienced a 6% decrease in after-hours trading, falling to $21.50. However, it remained relatively unchanged at the close of Wednesday’s trading session. Overall, shares have declined by 20% this year.
Third-Quarter Sales Outlook
Semtech, a semiconductor and cloud connectivity company based in Camarillo, Calif., anticipates third-quarter sales ranging from $190 million to $210 million. This is in contrast to the forecast of $247.7 million by analysts polled by FactSet. The company’s guidance takes various factors into account, including export restrictions, inflationary pressure, and the prevailing macroeconomic conditions.
Earnings Forecast
The company also expects an adjusted loss per share between 9 cents and 22 cents. Meanwhile, analysts polled by FactSet had initially predicted a profit of 12 cents per share.
Second Quarter Results
During the fiscal second quarter, Semtech announced that its sales reached $238.4 million, surpassing analysts’ expectations of $237.4 million.
However, Semtech reported a loss of $382 million, or $5.97 per share, in comparison to a loss of $29.42 million, or 46 cents per share, during the same period last year. Analysts had predicted a per-share loss of 44 cents. Net income was weighed down by a goodwill impairment charge of $279.6 million in the quarter.