Valens Semiconductor VLN is preparing to release its quarterly earnings on Wednesday, 2025-05-07. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Valens Semiconductor to report an earnings per share (EPS) of $-0.03.
Anticipation surrounds Valens Semiconductor's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.01, leading to a 0.47% drop in the share price the following trading session.
Here's a look at Valens Semiconductor's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.03 | -0.03 | -0.06 | -0.06 |
| EPS Actual | -0.03 | -0.02 | -0.03 | -0.04 |
| Price Change % | 3.0% | -0.0% | 8.0% | -2.0% |
Stock Performance
Shares of Valens Semiconductor were trading at $2.76 as of July 08. Over the last 52-week period, shares are up 0.2%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Perspectives on Valens Semiconductor
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Valens Semiconductor.
The consensus rating for Valens Semiconductor is Buy, derived from 2 analyst ratings. An average one-year price target of $4.0 implies a potential 44.93% upside.
Understanding Analyst Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of Blaize Holdings, Kopin and Wolfspeed, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Blaize Holdings, with an average 1-year price target of $3.0, suggesting a potential 8.7% upside.
- Analysts currently favor an Buy trajectory for Kopin, with an average 1-year price target of $2.25, suggesting a potential 18.48% downside.
- Analysts currently favor an Outperform trajectory for Wolfspeed, with an average 1-year price target of $4.5, suggesting a potential 63.04% upside.
Overview of Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Blaize Holdings, Kopin and Wolfspeed, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Valens Semiconductor | Buy | 45.58% | $10.58M | -6.12% |
| Blaize Holdings | Neutral | 83.42% | $680K | -399.31% |
| Kopin | Buy | 5.04% | $2.91M | -14.16% |
| Wolfspeed | Outperform | -7.62% | $-22.50M | -97.56% |
Key Takeaway:
Valens Semiconductor ranks highest in Revenue Growth among its peers. It also has the highest Gross Profit margin. However, it has the lowest Return on Equity.
All You Need to Know About Valens Semiconductor
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
Breaking Down Valens Semiconductor's Financial Performance
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Over the 3 months period, Valens Semiconductor showcased positive performance, achieving a revenue growth rate of 45.58% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Valens Semiconductor's net margin is impressive, surpassing industry averages. With a net margin of -49.37%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Valens Semiconductor's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -6.12%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Valens Semiconductor's ROA excels beyond industry benchmarks, reaching -5.09%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.06, Valens Semiconductor adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Valens Semiconductor visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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