Semtech Shares Slip 6% After Guiding for 3Q Loss

Semtech Shares Slip 6% After Guiding for 3Q Loss

Shares of Semtech declined on Wednesday after the company issued third-quarter guidance that missed Wall Street’s estimates.

The stock was down 6% to $21.50 in after-hours trading, and was little changed at Wednesday’s close. Shares are down 20% this year.

The Camarillo, Calif.-based semiconductor and cloud connectivity company said that it expects third-quarter sales of $190 million to $210 million, compared with the $247.7 million forecasted by analysts polled by FactSet. The company said that its guidance took into account export restrictions, inflationary pressure and other macroeconomic conditions.

Semtech also expects an adjusted loss of 9 cents to 22 cents per share. Analysts polled by FactSet expect a profit of 12 cents a share.

In the fiscal second quarter, the company reported that sales rose to $238.4 million to beat the $237.4 million expected by analysts.

Semtech posted a loss of $382 million, or $5.97 a share, compared with a loss of $29.42 million, or 46 cents a share, a year earlier. Analysts expected a per-share loss of 44 cents. A goodwill impairment charge of $279.6 million weighed on net income in the quarter.

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