Semtech (NASDAQ:SMTC) saw its shares rise more than 15% pre-market today after reporting third-quarter earnings that exceeded expectations and issuing a positive outlook for the current quarter.
For the third quarter, Semtech posted adjusted earnings of $0.26 per share, surpassing Wall Street analyst estimates of $0.23. Revenue reached $236.8 million, beating the consensus forecast of $232.89 million and reflecting a 10% sequential increase. The company’s data center business stood out, with net sales soaring 58% quarter-over-quarter to a record $43.1 million. Gross margins improved as well, expanding to 52.4%, up 200 basis points from the prior quarter.
Looking ahead to the fourth quarter, Semtech provided an optimistic forecast. The company expects adjusted earnings per share between $0.29 and $0.35, exceeding the Street consensus estimate of $0.27. Revenue is projected to range from $245 million to $255 million, also surpassing analysts’ estimate of $242.2 million.