Noteworthy Stock: Semtech Corporation (NASDAQ: SMTC)

On 28 Jan 2020, Semtech Corporation (NASDAQ:  SMTC) changed 3.46% to recent value of $52.1. The stock transacted 248075 shares during most recent day however it has an average volume of 396.8K shares. It spotted trading -10.11% off 52-week high price. On the other end, the stock has been noted 31.76% away from the low price over the last 52-weeks.

Semtech Corporation (SMTC) recently stated unaudited financial results for its third quarter of fiscal year 2020, which ended October 27, 2019.

Fourth Fiscal Quarter 2020 Outlook

Both the GAAP and non-GAAP fourth fiscal quarter 2020 outlook below take into account the anticipated impact to the Company, based on its current estimates, of the export restrictions pertaining to Huawei and certain of its associates, imposed by the U.S. Department of Commerce. The Company is continuing to review and assess the impact of the export restrictions on its products and services, but is unable to predict the full impact such restrictions may have on its future results of operations.

GAAP Fourth Fiscal Quarter 2020 Outlook

Net sales are predictable to be in the range of $130.0M to $140.0M

GAAP Gross margin is predictable to be in the range of 60.6% to 61.6%

GAAP SG&A expense is predictable to be in the range of $36.1M to $37.1M

GAAP R&D expense is predictable to be in the range of $27.3M to $28.3M

GAAP Intangible amortization expense is predictable to be about $3.8M

GAAP Interest and other expense, net is predictable to be about $2.0M

GAAP Effective tax rate is predictable to be in the range of 12% to 16%

GAAP Earnings per diluted share are predictable to be in the range of $0.12 to $0.19

Fully-diluted share count is predictable to be about 67.3M shares

Share-based compensation is predictable to be about $12.0M, categorized as follows: $0.6M cost of sales, $8.1M SG&A, and $3.3M R&D

Capital expenditures are predictable to be about $5.5M

Depreciation expense is predictable to be about $5.8M

Non-GAAP Fourth Fiscal Quarter 2020 Outlook (see the list of non-GAAP items and the reconciliation of these to the most comparable GAAP items set forth in the tables below)

Non-GAAP Gross margin is predictable to be in the range of 61.0% to 62.0%

Non-GAAP SG&A expense is predictable to be in the range of $28.0M to $29.0M

Non-GAAP R&D expense is predictable to be in the range of $24.0M to $25.0M

Non-GAAP Interest and other expense, net is predictable to be about $1.5M

Non-GAAP Effective tax rate is predictable to be in the range of 13% to 17%

Non-GAAP Earnings per diluted share are predictable to be in the range of $0.33 to $0.39

SMTC has a gross margin of 61.70% and an operating margin of 13.60% while its profit margin remained 8.70% for the last 12 months. Its earnings per share (EPS) expected to touch remained -36.30% for this year while earning per share for the next 5-years is expected to reach at 20.00%.  The company has 66.39M of outstanding shares and 65.26M shares were floated in the market. According to the most recent quarter its current ratio was 4.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of -2.13% from the mean of 20 days, 2.25% from mean of 50 days SMA and performed 6.46% from mean of 200 days price. Company’s performance for the week was -4.23%, -0.34% for month and YTD performance remained -1.51%.