Lattice Semiconductor (LSCC) reports earnings tomorrow: what to expect

What happened

Lattice Semiconductor will report earnings this Monday after the market closes. Last quarter it beat analysts' revenue expectations with revenues of $201.1 million, up 62.2% year on year, also beating earnings-per-share and operating income estimates.

Confirmed

Global impact / market context

Investors expect revenue to grow 91.9% this quarter, far above last year's 4.9% gain in the same quarter. A miss could hurt the stock because expectations are high, while a beat may support the share price.

Analyst inference

Peers in processors and graphics chips have already reported. Penguin Solutions grew revenue 67.7% year on year and beat estimates by 8.8%, while Allegro MicroSystems grew 29.2% and topped estimates, suggesting strong demand across the segment.

Analyst inference

What to watch

1. Lattice's reported revenue versus the 91.9% year-on-year growth analysts expect, and whether earnings per share and operating income also beat estimates as they did last quarter. Confirmed
2. Watch whether management keeps or raises its own revenue and profit guidance for the next quarter, since analysts reconfirmed estimates over the last 30 days expecting the business to stay the course. Proposed
3. Compare Lattice's growth with Penguin Solutions' 67.7% and Allegro's 29.2%, because slower growth could suggest Lattice is losing share in chips used by its customers. Analyst inference

Evidence

• stockstory.org