RTTNews | Jun 3, 2021 09:47AM EDT

09:46 Thursday, June 3, 2021 (RTTNews.com) - Shares of Semtech Corp. (SMTC) are rising over 4% Thursday morning, after the company reported upbeat Q1 results and strong Q2 outlook.

The stock, which has been trading in the range of $48.50 - $83.94 for the past one year, is currently trading at $64.92, up $2.99 or 4.82%, with trading volume of over 172K versus an average volume of 380K shares.

Q1 Results

The company reported Q1 GAAP net income of $23.5 million or $0.36 per share compared to $9.64 million or $0.15 per share last year.

On a non-GAAP basis, net income was $34.8 million or $0.53 per share versus $23.0 million or $0.35 per share in the prior year period. Analysts polled by Thomson Reuters expected earnings of $0.52 per share for the quarter. Analysts' estimate typically exclude certain special items.

Net sales for the quarter increased to $170.4 million from $132.7 million generated a year ago, reflecting the continued strength of the secular themes driving the company's growth platforms.

The company ended the quarter with cash and cash equivalents of $258.2 million. Free cash flow was $26.8 million as of May 2, 2021.

Q2 Guidance

The company projects Q2 GAAP earnings of $0.40 - $0.48 per share, and non-GAAP earnings of $0.57 - $0.65 per share, on net sales between $177 million and $187 million. Ten Wall Street analysts have a consensus earnings estimate of $0.58 per share on revenue of $172.68 million for the quarter.

Q2 GAAP Gross margin is expected to be in the range of 61.3% - 62.3%, while non-GAAP gross margin is estimated to be 61.7% - 62.7%.

Mohan Maheswaran, Semtech's President and Chief Executive Officer, stated, "We are pleased with the strong start to FY22 led by the strength from the IoT, Optical Infrastructure and Mobile segments."

"We believe we are very well positioned to continue the recent momentum into our fiscal Q2 as record demand, record bookings and record starting backlog highlight the underlying strength of our core growth engines and should enable the Company to deliver a record financial performance in FY22," Maheswaran added.

Read the original article on RTTNews ( https://www.rttnews.com/3199822/stock-alert-semtech-shares-up-4-on-robust-q1-results-strong-q2-outlook.aspx)

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