By Connor Hart
Semtech swung to a profit and logged higher-than-expected revenue in its fiscal fourth quarter, prompting its shares to rally in after-hours trading.
The stock was recently trading 10% higher, at $36. Shares have lost nearly half their value since the beginning of the year, despite being up 46% in the past 52 weeks.
The Camarillo, Calif., chipmaker on Thursday posted a profit of $39.1 million, or 43 cents a share, for its three months ended Jan. 26, compared with a loss of $642.4 million, or $9.98 a share, in last year's comparable quarter.
Adjusted per-share earnings came in at 40 cents, topping the 32 cents that analysts surveyed by FactSet expected.
Revenue increased 30%, to $251 million. Analysts modeled sales of $249.2 million.
Chief Executive Hong Hou called the company's fiscal 2025 a year of positive inflection, as it notched sequential improvements in net sales, gross and operating margins and per-share earnings.
"In the new fiscal year, we are intently focusing on three core priorities to position Semtech for future success: portfolio optimization and simplification, strategic investment in research and development and driving margin expansion," he said.
For its fiscal first quarter, Semtech guided for revenue of $245 million to $255 million, the midpoint of which is just below the $250.9 million that analysts polled by FactSet expect.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 13, 2025 16:35 ET (20:35 GMT)
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