Stock jumps to its highest level since March 2020

  • Semtech shares surge 20% after surprise adjusted 3Q profit
  • Stock up 20% to $20.06, largest percent jump since March 2020
  • Company reported a loss of $38.3 million in 3Q
  • Adjusted profit of 2 cents a share, beating analysts’ forecast of a 15-cent loss
  • Sales rose to $200.9 million, surpassing analysts’ forecast of $200.5 million
  • End-market demand for high-end consumers and data center applications grew
  • Company expects sales of $180 million to $200 million in the fiscal fourth quarter
  • Adjusted earnings guidance of an 11 cent loss to a 1 cent profit per share

Shares of Semtech rose 20% to $20.06 after the company reported an unexpected adjusted profit in the third quarter. The stock’s surge marks its largest percent jump since March 2020. Semtech had a loss of $38.3 million in the quarter, but after stripping out certain one-time items, the company posted an adjusted profit of 2 cents a share, beating analysts’ forecast of a 15-cent loss. Sales also exceeded expectations, rising to $200.9 million compared to the forecasted $200.5 million. The company attributed the positive results to growing end-market demand for high-end consumers and data center applications. Looking ahead, Semtech expects sales of $180 million to $200 million in the fiscal fourth quarter and issued adjusted earnings guidance of an 11 cent loss to a 1 cent profit per share.

Public Companies: Semtech (Unknown)
Private Companies:
Key People: Paul Pickle (Chief Executive)

Factuality Level: 8
Justification: The article provides specific information about Semtech’s financial performance in the third quarter, including the unexpected adjusted profit and the comparison to analysts’ expectations. It also includes statements from the company’s CEO regarding end-market demand. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. However, it lacks in-depth analysis or additional context about the company’s overall financial health and industry trends.

Noise Level: 3
Justification: The article provides relevant information about Semtech’s unexpected adjusted profit in the third quarter, including details about the company’s financial performance, analyst expectations, and CEO comments. However, it lacks in-depth analysis, scientific rigor, and actionable insights. The article stays on topic and supports its claims with data and examples, but it does not explore long-term trends, antifragility, or the consequences of decisions on stakeholders. Overall, the article contains some noise and filler content, but it provides basic information about Semtech’s financial results.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Semtech

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial performance of Semtech, a semiconductor maker. There is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com