SMTC - Why Semtech Stock Popped Then Dropped on Thursday
2024-06-06 13:20:09 ET
Semtech (NASDAQ: SMTC) investors were all set for a banner day. Last night, the maker of semiconductors for Internet-of-Things applications announced its results for the first quarter of fiscal year 2025, ended April 28. The results included a stunning $0.06-per-share profit where analysts had predicted no profit at all, and reported $206.1 million in sales where the Street was expecting only $200.2 million.
Shares of Semtech exploded as much as 21% higher in early trading... only to turn tail and retreat later in the day. As of 12:20 p.m. ET, Semtech stock is sitting on a gain of only 0.5%.
Why the sudden rethink about whether Semtech's results were good or bad? Well, the most obvious answer is because Semtech didn't actually earn $0.06 per share. Yes, its non-GAAP (adjusted) profit was positive, and better than Wall Street expected. But when calculated according to generally accepted accounting principles ( GAAP ), Semtech actually lost $0.36 per share.
For further details see:
Why Semtech Stock Popped, Then Dropped, on Thursday