Business Corpus: Semtech Stock Jumps As Chipmaker Beats Second-Quarter TargetsChipmaker Semtech late Wednesday edged Wall Street's estimates for its fiscal second quarter and guided slightly higher for the current quarter. The post Semtech Stock Jumps As Chipmaker Beats Second-Quarter Targets appeared first on Investor's Business Daily.

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Chipmaker Semtech (SMTC) late Wednesday edged Wall Street's estimates for its fiscal second quarter and guided slightly higher for the current quarter. Semtech stock jumped in extended trading.

The Camarillo, Calif.-based company earned an adjusted 55 cents a share on sales of $163.2 million in the quarter ended July 29. Analysts expected it to earn 54 cents a share on sales of $161.2 million. On a year-over-year basis, earnings per share rose 22% while sales climbed 7%.

For the current quarter, Semtech expects to earn an adjusted 61 cents a share on sales of $173 million. That's based on the midpoint of its guidance. Wall Street was modeling Semtech to earn 60 cents a share on sales of $171.4 million. Semtech's guidance points to growth of 13% in earnings per share and 15% in sales.

Semtech stock soared 10%, near 55, in after-hours trading on the stock market today. During the regular session, it ended the day unchanged at 49.90. It is likely to test a buy point in regular session trading Thursday. Semtech stock has formed a flat base with a buy point of 52.

Semtech designs analog and mixed-signal integrated circuits used in enterprise computers, telecom networks, consumer electronics and other devices.

Growth Engines Led By LoRa Tech

"We are pleased to deliver another quarter that exceeded our expectations as we saw healthy growth from the IoT (Internet of Things), mobile and data center markets," Chief Executive Mohan Maheswaran said in a news release.

He added, "Our growth engines, led by LoRa's global adoption, continue to position the company well for future growth. Bookings and design wins remained strong and we entered our third fiscal quarter with record starting backlog."

LoRa, short for "long range," is a digital wireless data communications technology for the Internet of Things. LoRa enables very-long-range transmissions — more than 6 miles in rural areas — with low power consumption.

Monolithic Power Gets Price-Target Hike

Elsewhere in the chip sector Wednesday, Monolithic Power Systems (MPWR) received a bullish report from a Wall Street analyst.

KeyBanc Capital Markets analyst John Vinh raised his price target on the chipmaker to 170 from 150 and reiterated his overweight rating. Monolithic stock rose a fraction to 149.46 on Wednesday.

"While (Monolithic stock) is not immune to a significant correction, we believe the path to $1 billion in revenues is well-paved given server and auto growth vectors," Vinh said in a report to clients. "As such, we think it's time to start thinking about $2 billion."

The company's design wins indicate that Monolithic should be able to outgrow its peers by 15% over the next 3 years, he said.

Vinh expects Monolithic to hit $1 billion in revenue by 2021.

San Jose, Calif.-based Monolithic makes semiconductor power control and delivery systems.

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