Semiconductor company Semtech (NASDAQ:SMTC) will be announcing earnings results tomorrow after market hours. Here’s what to look for.

Semtech beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $215.4 million, down 9.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Is Semtech a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Semtech’s revenue to grow 15.5% year on year to $232.1 million, improving from the 13.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Semtech has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.3% on average.

Looking at Semtech’s peers in the semiconductor manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 3%, and Nova reported revenues up 38.9%, topping estimates by 4.1%. Teradyne traded down 11.1% following the results while Nova was up 3.2%.

Read our full analysis of Teradyne’s results here and Nova’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the semiconductor manufacturing stocks have shown solid performance, the group has generally underpeformed, with share prices down 6.1% on average over the last month. Semtech is up 13.7% during the same time and is heading into earnings with an average analyst price target of $56.60 (compared to the current share price of $51.15).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.