Q1 Earnings Highs And Lows: Semtech (NASDAQ:SMTC) Vs The Rest Of The Semiconductor Manufacturing Stocks

Let's dig into the relative performance of Semtech (NASDAQ:SMTC) and its peers as we unravel the now-completed Q1 semiconductor manufacturing earnings season.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but semiconductor manufacturing stocks have performed well, with the share prices up 19.5% on average since the previous earnings results.

Semtech (NASDAQ:SMTC) A public company since the late 1960s, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.

Semtech reported revenues of $206.1 million, down 12.9% year on year, exceeding analysts' expectations by 3%. Overall, it was a solid quarter for the company with a significant improvement in its inventory levels.

"I am pleased with Semtech’s solid first quarter financial performance, with net sales above the high-end of our guidance range, along with meaningful declines in channel inventories across each of our end markets," said Paul H. Pickle, Semtech's president and chief executive officer.

The stock is down 7.4% since reporting and currently trades at $35.80.

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Best Q1: Lam Research (NASDAQ:LRCX) Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.

Lam Research reported revenues of $3.79 billion, down 2% year on year, outperforming analysts' expectations by 1.7%. It was a strong quarter for the company with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

The market seems happy with the results as the stock is up 21.3% since reporting. It currently trades at $1,073.

Kulicke and Soffa (NASDAQ:KLIC) Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $172.1 million, flat year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

Interestingly, the stock is up 18.5% since the results and currently trades at $52.48.

Teradyne (NASDAQ:TER) Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Teradyne reported revenues of $599.8 million, down 2.9% year on year, surpassing analysts' expectations by 5.2%. Revenue aside, it was a solid quarter for the company with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.

The stock is up 56.9% since reporting and currently trades at $158.

Amkor (NASDAQ:AMKR) Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.

Amkor reported revenues of $1.37 billion, down 7.2% year on year, in line with analysts' expectations. Taking a step back, it was a strong quarter for the company with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

The stock is up 33.7% since reporting and currently trades at $42.13.

This content was originally published on Stock Story