Why Semtech Stock Is Surging After Hours

Semtech Corp SMTC shares are trading higher in Wednesday's after-hours session after the company reported better-than-expected financial results.

What Happened: Semtech said fiscal first-quarter revenue increased 17% year-over-year to $236.54 million, which beat the consensus estimate of $234.99 million, per Benzinga Pro. The company reported positive earnings of 2 cents per share versus estimates for a loss of 8 cents per share.

"Semtech exceeded the midpoint of our revenue and earnings guidance as we see signs of business stabilization," said Mohan Maheswaran, president and CEO of Semtech.

"As we continue to navigate this challenging macro-economic environment, we are taking steps to improve our operational efficiency and financial performance while focusing on executing our plans."

Semtech sees fiscal second-quarter revenue in the range of $233 million to $243 million. Gross margin is expected to be between 42.6% and 44.8% versus  43.5% in the first quarter. 

See Also: Smartsheet Shares Are Sliding After Hours: What's Going On?

SMTC Price Action: Semtech shares were up 14% after hours at $25.57 at time of publication, according to Benzinga Pro.

Photo: brookhaven from Pixabay.