Semtech Corp. beat Wall Street expectations on adjusted earnings and revenue for the fourth quarter, but its stock fell further than the overall market.
The Camarillo semiconductor developer on Wednesday reported adjusted net income of $26.8 million (40 cents a share) for the quarter ending Jan. 26. That’s lower than adjusted net income of $37.5 million (55 cents) in the same period a year earlier. Revenue dropped by 14 percent to $138 million.
However, the numbers were better than analysts’ average expected earnings of 35 cents a share on revenue of $134 million, according to Thomson Financial Network.
Chief Executive Mohan Maheswaran said the company ended the 2020 fiscal year with a solid finish during challenging times.
“Despite the ongoing geopolitical challenges and the uncertainties associated with the coronavirus, we believe the long-term sustainability of our secular growth drivers, along with our balanced end-market approach and strong customer relationships, should enable the company to deliver a strong financial performance in fiscal year 2021 and beyond,” Maheswaran said in a statement.
Shares in Semtech (SMTC) on Wednesday closed down $2.93, or about 8 percent, to $33.78 on the Nasdaq. The Nasdaq closed down 4.7 percent.