Lattice Semiconductor missed revenue expectations by 3.3% in the last quarter, with revenues reaching $170.6 million, a decline of 3% year-on-year. This disappointing performance was further accentuated by the weak revenue guidance for the upcoming quarter. The company is set to report a 23.9% year-on-year revenue decline to $140.2 million this quarter, a stark reversal from the 22.5% increase seen in the same period last year. Adjusted earnings are forecasted to be at $0.28 per share.
Analysts’ View and Expectations
Despite the challenging outlook, the majority of analysts have upheld their estimates for Lattice Semiconductor heading into earnings day. This indicates a certain level of confidence in the company’s ability to weather the storm and maintain stability. Over the past two years, Lattice Semiconductor has only missed Wall Street’s revenue estimates once, managing to exceed expectations by an average of 1.4%.
Analyzing Lattice Semiconductor’s performance in relation to its peers provides valuable insights. Companies like Intel and SMART, operating in the semiconductor segment, have already reported their Q1 results. Intel recorded an 8.6% year-on-year revenue growth, meeting analysts’ expectations, while SMART experienced a revenue decline of 26.7%, aligning with Wall Street’s consensus. The market response to these results was evident, with Intel and SMART’s stock prices dropping 6% and 10.5%, respectively.
The market environment for growth stocks, including semiconductor companies, has been marked by heightened volatility. While Lattice Semiconductor has seen a modest decline of 2.8% in share price over the past month, the broader semiconductor sector has also faced challenges. As the company heads into earnings, the average analyst price target stands at $75.7, slightly below the current share price of $75.8.
Lattice Semiconductor’s upcoming earnings report will be closely watched by investors, given the mixed performance in previous quarters and the prevailing market conditions. The company’s ability to address revenue declines and meet analyst expectations will be crucial in determining its future trajectory in the semiconductor sector. Investors should exercise caution and closely monitor the earnings release to make informed decisions regarding their investment strategies.