Why Lattice Semiconductor (LSCC) Shares Are Sliding Today
Stock Story
Published Apr 30, 2024 14:28
Updated Apr 30, 2024 14:46
Why Lattice Semiconductor (LSCC) Shares Are Sliding Today
Stock Story -
What Happened: Shares of semiconductor designer Lattice Semiconductor (NASDAQ:LSCC) fell 8.5% in the afternoon session after the company reported first quarter results. The quarter itself was fine: Revenue beat by about 0.5%, operating income beat by 1.5%, and EPS beat by a penny. Guidance is what is causing weakness in the stock. Both revenue and implied operating profit guidance for the next quarter were below. The weakness seems to be caused by inventory destocking headwinds in communications infrastructure and within industrials and automotive in Europe. However, management also sees a second half of 2024 recovery, as inventory headwinds dissipate and new product ramps from Nexus and Avant contribute incremental revenues.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lattice Semiconductor? Find out by reading the original article on StockStory, it's free.
What is the market telling us: Lattice Semiconductor's shares are somewhat volatile and over the last year have had 18 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago, when the company gained 5.9% on the news that semiconductor peer, Texas Instruments (NASDAQ:TXN) reported first-quarter results that topped analysts' revenue and EPS expectations, driven by strong performance in its analog segment. Looking ahead, next quarter's revenue guidance was above Wall Street's estimates.
On the other hand, its gross margin fell, and its inventory levels increased. Overall, this was a decent quarter for Texas Instruments. The results likely suggest strong demand for semiconductors, as more companies report quarterly results in the new earnings season. More specifically, Texas Instruments supplies power solutions for FPGAs--field programmable gate arrays. These customizable chips are LSCC's specialty.
Lattice Semiconductor is up 3.5% since the beginning of the year, but at $70.81 per share it is still trading 27.2% below its 52-week high of $97.26 from August 2023. Investors who bought $1,000 worth of Lattice Semiconductor's shares 5 years ago would now be looking at an investment worth $5,464.
Get The App
Written By: Stock Story
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.