today Semtech Co., Ltd. (NASDAQ:SMTC) stockholders said analysts had sharply lowered their forecasts for next year. Both earnings and earnings per share (EPS) forecasts are underperforming, suggesting that analysts are having a major impact on the business.
Following the latest downgrade, 10 analysts covering Semtech provided a consensus estimate of US$669 million in 2024 revenue. Statutory earnings per share are expected to fall 42% to he US$1.33 over the same period. Before this latest update, analysts had projected 2024 earnings for him at US$748 million and earnings per share (EPS) for him at US$2.03. Start with significantly reduced revenue estimates and EPS estimates.
See Semtech’s latest analysis
It’s no surprise to learn that analysts have lowered their price target by 16% to $42.50. The consensus price target is just an average of individual analyst targets, so it’s useful to see how broad the range of underlying estimates is. It is valued at US$63.00 per share, while the most bearish analyst values it at US$32.00. Note the large gap in analyst price targets. This means that the underlying business has a fairly wide range of possible scenarios.
Looking at the big picture now, one way to understand these projections is to see how they measure against both historical performance and industry growth projections. These estimates suggest that annual sales are expected to fall 12% from his by the end of 2024, with sales expected to slow. This represents a significant decline from the annual growth rate of 6.0% over the last five years. Comparing this to our data shows that other companies in the same industry as a whole are expected to grow their revenue by 7.0% annually. Semtech’s earnings are clearly expected to be significantly worse than the industry as a whole.
Conclusion
The biggest problem with the new estimates is that analysts have lowered their earnings-per-share estimates, suggesting business headwinds lie ahead for Semtech. Unfortunately, they’ve also lowered their earnings estimates, with the latest forecasts suggesting that revenue growth for this business will be slower than the market as a whole. After such a sharp shift in sentiment from analysts, it’s understandable if readers feel a little wary of Semtech.
Still, the long-term prospects of the business are far more important than next year’s earnings. We have quotes for 2025 from multiple Semtech analysts and you can view them for free on our platform here.
Of course, look at the management of the company invest big money It’s just as useful to know if analysts are lowering their estimates.So you can also search for this freedom A list of stocks that the insider is buying.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …
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