Semtech (SMTC) Tops Q4 EPS by 1c, Slight Beat on Revenues; Offers Q1 EPS Guidance Below Consensus

Semtech (NASDAQ: SMTC) reported Q4 EPS of $0.55, $0.01 better than the analyst estimate of $0.54. Revenue for the quarter came in at $160 million versus the consensus estimate of $159.79 million.

• Q4 FY2019 net sales of $160.0 million and GAAP EPS of $0.20 and non-GAAP EPS of $0.55
• FY2019 record net sales of $627.2 million, an increase of 7% over the prior year’s results and GAAP EPS of $0.92 and record non-GAAP EPS of $1.93
• LoRa®-enabled net sales increased 86% Y/Y to approximately $78.0 million in FY2019
• Signal Integrity and Wireless and Sensing Product Groups achieved record annual net sales
• Repurchased 770,700 or $36.5 million of stock in Q4 FY2019 and 2.4 million or $116.2 million in FY2019
• Delivered record annual operating cash flow of $183.6 million or 29% of net sales in FY2019

Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated: “We are proud to deliver Q4 results that were in-line with our guidance despite the challenging environment. We are also pleased to deliver a record financial performance for FY2019 with net sales growth of 7% Y/Y and non-GAAP earnings growth of nearly 2x net sales. While the near-term visibility is impacted by China demand softness, geopolitical issues, as well as weakness from both the smartphone and data center end markets, we believe the long-term sustainability of our secular growth drivers in the IoT, data center and mobile markets should drive a second-half rebound and enable us to deliver another solid financial performance in fiscal year 2020.”

GUIDANCE:

Semtech sees Q1 2020 EPS of $0.30-$0.36, versus the consensus of $0.51.

• Non-GAAP Gross margin is expected to be in the range of 61.9% to 62.5%
• Non-GAAP SG&A expense is expected to be in the range of $26.5 million to $27.5 million
• Non-GAAP R&D expense is expected to be in the range of $24.5 million to $25.5 million
• Non-GAAP Interest and other expense is expected to be approximately $2.0 million
• Non-GAAP Effective tax rate is expected to be in the range of 15% to 19%

For earnings history and earnings-related data on Semtech (SMTC) click here.

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