Benzinga | Jun 1, 2021 10:15AM EDT

A Preview Of Semtech's Earnings

On Wednesday, June 02, Semtech (NASDAQ:SMTC) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Semtech analysts model for earnings of $0.52 per share on sales of $164.31 million. In the same quarter last year, Semtech announced EPS of $0.35 on revenue of $132.70 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 48.57%. Sales would be up 23.82% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.48 0.46 0.41 0.32EPS Actual 0.51 0.47 0.43 0.35Revenue Estimate 158.29 M 149.83 M 141.76 M 129.28 MRevenue Actual 164.67 M 154.08 M 143.66 M 132.70 M

Stock Performance

Shares of Semtech were trading at $63 as of May 31. Over the last 52-week period, shares are up 17.85%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Semtech is scheduled to hold the call at 17:00:00 ET and can be accessed here.