In the first quarter of 2025, LSCC reported revenue of $120.1 million, aligning with market expectations. The company experienced sequential revenue growth and achieved a record level of design wins, contributing to an expansion in operating margins. These gains were primarily driven by new applications across several sectors, including generative AI in data centers, industrial robotics, automotive in-cabin and ADAS technologies, consumer AR/VR, security with a focus on post-quantum cryptography, and far edge AI geared towards low-power use. While LSCC is optimistic about its advancements, it remains vigilant regarding potential market and industry changes that could influence future projections.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Lattice Semiconductor Corp (LSCC, Financial) is $64.95 with a high estimate of $85.00 and a low estimate of $42.00. The average target implies an upside of 22.14% from the current price of $53.18. More detailed estimate data can be found on the Lattice Semiconductor Corp (LSCC) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Lattice Semiconductor Corp's (LSCC, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lattice Semiconductor Corp (LSCC, Financial) in one year is $57.66, suggesting a upside of 8.42% from the current price of $53.18. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lattice Semiconductor Corp (LSCC) Summary page.
LSCC Key Business Developments
Release Date: February 10, 2025
- Q4 2024 Revenue: $117.4 million, down 8% sequentially and 31% year-over-year.
- Full Year 2024 Revenue: $509.4 million, down 31% from 2023.
- Q4 Non-GAAP Gross Margin: 62.1%, including a $7 million onetime charge; would have been 68.1% without the charge.
- Full Year 2024 Non-GAAP Gross Margin: 67.4%; would have been 68.7% excluding the onetime charge.
- Q4 Non-GAAP Operating Expenses: $52.8 million, down 2% sequentially and 5% year-over-year.
- Full Year 2024 Non-GAAP Operating Expenses: $215.6 million, decreased 4% year-over-year.
- Q4 Non-GAAP Operating Margin: 17.1%, including the onetime charge; would have been 26.4% without the charge.
- Q4 Adjusted EBITDA Margin: 24.9%; would have been 33.2% excluding the onetime charge.
- Full Year 2024 Adjusted EBITDA Margin: 31.8%; would have been 33.2% excluding the onetime charge.
- Q4 Non-GAAP EPS: $0.15 per share; would have been $0.20 per share without the onetime charge.
- Full Year 2024 Non-GAAP EPS: $0.90; would have been $0.95 per share excluding the onetime charge.
- Q4 Cash Flow from Operations: Approximately $45.4 million.
- Q4 Free Cash Flow Margin: 34%, up from 31% in Q3.
- Q4 Share Buybacks: Approximately 367,000 shares or $20 million.
- Q1 2025 Revenue Guidance: Expected to be between $115 million and $125 million.
- Q1 2025 Gross Margin Guidance: 69% plus or minus 1% on a non-GAAP basis.
- Q1 2025 Non-GAAP EPS Guidance: Expected to be in the range of $0.20 to $0.24 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lattice Semiconductor Corp (LSCC, Financial) reported fourth quarter 2024 revenue in line with guidance at $117.4 million, indicating stable financial performance.
- The company achieved record design wins in 2024, showcasing strong market demand for its products.
- New products, including Nexus and Avant, grew double digits in 2024 compared to 2023, highlighting successful product innovation.
- The book-to-bill ratio has been over 1 for the first time in six quarters, suggesting a positive outlook for future orders.
- Lattice Semiconductor Corp (LSCC) is expanding its executive leadership team with experienced industry veterans, which is expected to drive the next phase of growth.
Negative Points
- Fourth quarter revenue was down 31% year-over-year, reflecting challenges in the market.
- The communications and computing segment saw a 5% sequential decline, and industrial and automotive were down 9%, indicating sector-specific weaknesses.
- A $7 million onetime charge related to materials purchased during supply constraints impacted gross margins.
- Full year 2024 revenue decreased by 31% from 2023, showing significant year-over-year decline.
- The company implemented a 14% workforce reduction, indicating cost-cutting measures in response to market conditions.
