Semtech Corporation Shares Shoot Up On Better Than Expected Results
Warrior Trading | Mar 09, 2017 08:08AM ET
Semtech Corporation (NASDAQ:SMTC)
Semtech Corporation (SMTC), a company that markets analog and mixed-signal semiconductor products yesterday reported their fiscal fourth quarter 2017 financial results.
Semtech reported fourth quarter adjusted earnings of $0.37 per share which beat analyst projections of $0.35 per share. Semtech reported fourth quarter revenues of $140 million which beat analyst expectations of $138.2 million.
h3 Semtech Corporation CEO’s Comments/h3h3 SMTC Technical Analysis/h3
Mohan Maheswaran, Semtech’s President and Chief Executive Officer, stated, “We were pleased to deliver better than seasonal Q4 results that were once again at the upper end of our guidance led by growth in the enterprise computing, communications and industrial end-markets. The Company grew FY2017 non-GAAP net sales 12% over the prior year while delivering non-GAAP earnings growth at more than 5 times that rate by maintaining non-GAAP gross margins at the upper end of our target range and through Opex discipline. We enter FY2018 with tremendous momentum driven by our growth markets that include IoT, hyper-scale datacenters and mobile devices which should continue to drive our growth and help the Company to outperform the Industry and peers.” Globe Newswire
SMTC opened trading yesterday at $33.80 which was up from the previous day’s trading close of $33.50. Shares closed trading yesterday at $34.30 and spiked up after market to $36.75, equivalent to a 7% increase from the closing price. Taking a look at the daily chart we can see that the last time SMTC traded above these levels we have to go all the way back to May 26th 2013, when it traded at highs of $36.85.
Taking a closer look at the daily chart we can see that before the spike up SMTC had already been in an overall upward trend dating back to November 2nd, when it traded at $23.95. SMTC has a float of 64.82 million shares and traded 2.16 times the normal daily trading volume on Wednesday.
For trading purposes, I would like to see SMTC open trading on Thursday above $36.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
h3 Company Profile/h3
Get The News You Want
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products. The company provides signal integrity products, including a portfolio of optical communications, broadcast video, surveillance video, active cable transceiver, and backplane products used in various enterprise computing, industrial, communications, and high-end consumer applications; and proprietary advanced wired communication and ultra-high speed serializer/deserializer products for use in long-haul optical transport communication.
It also offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and wireless and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products used in industrial and consumer applications.
In addition, the company provides power products consisting of switching voltage regulators, combination switching and linear regulators, smart regulators, charge pumps, and wireless charging that control, alter, regulate, and condition the power within electronic systems; and discrete semiconductor products, including rectifiers, assemblies, and other products for use in industrial, military, medical, automotive, and aerospace applications, as well as defense systems, such as satellite communications.
It primarily serves original equipment manufacturers and their subcontractors. The company sells its products directly, as well as through independent sales representative firms and independent distributors in the Asia Pacific, Europe, and North America. Semtech Corporation has a strategic agreement with MultiPhy Ltd. The company was founded in 1960 and is headquartered in Camarillo, California.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.