By Dean Seal
Shares of Semtech Corp. fell by more than 25%, to a six-year low of $23.56, on Thursday after the company forecast an adjusted loss in the current quarter, instead of a profit as analysts had been projecting.
After the bell on Wednesday, the semiconductor and cloud-software maker said it expects an adjusted loss of between 4 cents and 11 cents a share for the first quarter of fiscal 2024 ending at the end of March. Analysts polled by FactSet had been expecting adjusted earnings of 43 cents a share.
Benchmark analyst Cody Acree said in a research note that the tough outlook reflects continued softness in China and weak consumer demand.
For the fiscal fourth-quarter, Semtech reported that it swung to a loss of $51 million, or 80 cents a share, from a profit of $34.8 million, or 53 cents a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were 47 cents a share, a penny below analyst expectations.
Sales came in at $167.5 million, down from $190.6 million a year ago but above analyst expectations for $150.1 million.
Write to Dean Seal at [email protected]
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