Semtech Corporation (NASDAQ:SMTC) stock rose Wednesday after the semiconductor company reported strong second-quarter results and issued third-quarter guidance above estimates.
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Semtech reported adjusted earnings of 71 cents per share, beating the 57-cent estimate. Sales rose 33% year over year to $341.9 million, topping the $328.61 million consensus. Adjusted earnings increased 73% from a year earlier.
The company’s adjusted gross margin expanded 150 basis points sequentially to 54.5%. Adjusted EBITDA increased to $91.1 million from $56.5 million a year earlier. The adjusted EBITDA margin improved to 26.6% from 21.9%.
Operating cash flow rose 55% to $69 million, while free cash flow increased 48% to $61 million. Semtech ended the quarter with $204 million in cash and $503 million in debt.
