SMTC Set to Report Q2 Earnings: What's in the Cards for the Stock?

Semtech Corporation SMTC is scheduled to report second-quarter fiscal 2025 results on Aug. 25.For the fiscal second quarter, Semtech anticipates revenues to be $256 million (+/- $5 million). The Zacks Consensus Estimate for revenues is pegged at $256 million, indicating a rise of 18.9% from the year-ago quarter.SMTC anticipates non-GAAP earnings per share to be 40 cents (+/- 3 cents). The consensus mark for the same is pegged at 40 cents, unchanged over the past 60 days, indicating a robust improvement from the year-ago quarter’s earnings of 11 cents.Factors to Consider for SMTCSemtech’s fiscal second-quarter performance is likely to have benefited from strength across its infrastructure and high-end consumer end markets. Similarly, the wireless end-market is likely to have witnessed strong growth owing to SMTC’s increasing 5G offerings. Semtech’s launch of cost-optimized 5G solutions, including EM9492 and EM9295 modules, is likely to be adopted by telecom carriers. Increased compliance with certifications, including FCC, PTCRB for its EM8695 5G RedCap module and ISED, CE, JRF, and NCC certifications for its HL7900 Global 5G LPWA module, is likely to have boosted its adoption among global networking carriers.Semtech Corporation Price and EPS Surprise Semtech Corporation price-eps-surprise | Semtech Corporation QuoteStrong Momentum across its Signal Integrity and Analog Mixed Signal & Wireless product lines is expected to have contributed well. The growing adoption of artificial intelligence might have been a plus for the upcoming quarter. Growing traction across hyperscale data center applications on the back of Tri-Edge and FiberEdge transimpedance amplifier products is expected to have aided SMTC’s performance in the to-be-reported quarter. Robust demand for the company’s CopperEdge linear redrivers for Active Copper Cable applications is likely to have driven Semtech’s performance in the to-be-reported quarter.The increasing demand for LoRa devices and LoRaWAN standards is expected to have contributed positively to top-line growth in the to-be-reported quarter. The availability of its one-channel LoRaWAN hub reference design and evaluation kit targeting smaller-scale network deployments, such as for SMB/SME and smart home applications, is anticipated to impact its second-quarter results positively.However, macroeconomic challenges, including the protracted inflationary conditions and still-high interest rates, are likely to have posed challenges for the company in the fiscal second quarter. Additionally, escalating tensions between the United States and China might have raised concerns. Softness in the industrial end-market and the Connectivity segment is expected to have been a major negative.What Our Proven Model Says for SMTC’s Q4 EarningsAccording to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.Semtech has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:BuildABear Workshop BBW currently has an Earnings ESP of +11.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.BuildABear Workshop shares have jumped 19.5% year to date. BuildABear Workshop is slated to report its second-quarter 2025 results on Aug. 28.Abercrombie & Fitch ANF has an Earnings ESP of +2.62% and a Zacks Rank #3 at present.Abercrombie & Fitch shares have declined 38.5% year to date. Abercrombie & Fitch is slated to report its second-quarter fiscal 2026 results on Aug. 27.Bath & Body Works BBWI currently has an Earnings ESP of +3.17% and a Zacks Rank #3.Bath & Body Works shares have declined 23.6% in the year-to-date period. Bath & Body Works is scheduled to report its second-quarter fiscal 2026 results on Aug. 28.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Semtech Corporation (SMTC): Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW): Free Stock Analysis Report Bath & Body Works, Inc. (BBWI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks