Semtech Stock Is Sliding Today: What's Going On?

Semtech Corp SMTC shares are trading lower Thursday after the company reported fourth-quarter financial results.

• Q4 Revenue: $167.51 million beat estimates of $150.08 million
• Q4 EPS: 47 cents missed estimates of 48 cents

"Despite a challenging macroeconomic environment Semtech delivered Q4 results that exceeded the midpoint of our Q4 guidance," said Mohan Maheswaran, president and CEO of Semtech.

"While the challenging macroeconomic environment is likely to continue over the next few quarters, the acquisition of Sierra Wireless is now complete helping us to diversify our geographical balance and deliver highly differentiated end-to-end solutions for the fast-growing low power IoT market."

First-quarter revenue is expected to be between $230 million and $240 million. The company anticipates an adjusted loss of 4 cents to 11 cents per share.

Adjusted gross margins are expected to be between 47.5% and 49.5%. For comparison, fourth-quarter margins came in at 62.3%.

Following the company's quarterly results, Susquehanna analyst Christopher Rolland maintained Semtech with a Neutral rating and lowered the price target from $32 to $30.

See Also: US Stocks Eye Strong Q1 Finish As Futures Point To Higher Open: Jobless Claims, GDP Data In Focus

SMTC Price Action: Semtech shares were down 16.5% at $26.80 at time of publication, according to Benzinga Pro.

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