Semtech Cuts Q4 Outlook, Shares Plunge

(RTTNews) - Shares of Semtech Corp. (SMTC) plunged 18 percent in extended hours on Wednesday after the chip maker lowered its outlook for the fourth quarter, citing ongoing delays in carrier capital spending and the ramp up of a new consumer mobile platform.

Camarillo, California-based Semtech's expects fourth-quarter earnings at break even per share to $0.08 per share, adjusted earnings of $0.18 to $0.24 per share and revenues of $120 million to $130 million.

Analysts polled by Thomson Reuters currently estimate earnings of $0.34 per share on revenues of $138.7 million for the quarter. Analysts estimates typically exclude one-time items.

Earlier, the company expected earnings of $0.09 to $0.18 per share, adjusted earnings of $0.29 to $0.37 per share and revenues of $132.0 million to $144.0 million.

Semtech, which makes analog and mixed-signal semiconductors, blamed the ongoing delays in carrier capex spending and a 6-month push-out in the ramp of a new consumer mobile platform.

SMTC closed Wednesday's trading at $28.07, down $0.49 or 1.72%, on the Nasdaq. The stock further dropped $5.07 or 18.06% in after-hours trade.