Loop Capital has revised its price target for Lattice Semiconductor (LSCC, Financial), reducing it from $85 to $75, while maintaining a Buy rating on the stock. Following the company's first-quarter results and outlook for the second quarter, it was noted that inventory in distribution equaled approximately 79% of Q1 sales but is on a declining trend. However, the complete reduction of distribution inventory to the desired three-month level might extend until the end of fiscal year 2024, rather than the previous estimate of mid-fiscal year 2024, according to the analyst's report to investors.
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 23.81% from the current price of $52.46. 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 9.91% from the current price of $52.46. 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: May 05, 2025
- Revenue: $120.1 million, a 2% increase compared to Q4 and a 15% decline compared to the year-ago period.
- Non-GAAP Gross Margin: 69%, reflecting resilience despite a challenging environment.
- Non-GAAP Operating Expense: $51.4 million, an 8% decrease compared to Q4 and a 6% decrease compared to the year-ago period.
- Non-GAAP Operating Margin: 26.2%.
- Adjusted EBITDA Margin: 33.4%.
- Non-GAAP EPS: $0.22, in line with guidance.
- GAAP Net Cash Flow from Operating Activities: $31.9 million with a 26.5% operating cash flow margin.
- Free Cash Flow: $23.3 million with a 19.4% free cash flow margin.
- Stock Repurchase: Approximately $25 million of common stock repurchased, reducing dilution by 4.6%.
- Q2 2025 Revenue Guidance: Expected to be in the range of $118.5 million to $128.5 million.
- Q2 2025 Gross Margin Guidance: Expected to be 69% plus or minus 1% on a non-GAAP basis.
- Q2 2025 Non-GAAP OpEx Guidance: Expected to be between $50.5 million and $52.5 million.
- Q2 2025 Net Income Guidance: Expected to be between $0.22 and $0.26 per share on a non-GAAP basis.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lattice Semiconductor Corp (LSCC, Financial) delivered Q1 2025 revenue of $120.1 million, in line with prior guidance.
- Non-GAAP gross margin remained strong at 69%, reflecting the resilience of the business model.
- The company achieved a 33.4% adjusted EBITDA, demonstrating financial discipline.
- Revenue from new products continues to grow at a strong double-digit pace, both sequentially and year-on-year.
- Lattice Semiconductor Corp (LSCC) has expanded its design win rate on small and midrange FPGAs to record levels.
Negative Points
- Q1 2025 revenue reflected a 15% decline compared to the year-ago period.
- The company is experiencing ongoing inventory digestion, particularly in the Communications and Industrial segments.
- There is caution regarding potential indirect impacts from new tariffs affecting the semiconductor industry.
- The macro environment and geopolitical situation, particularly tariffs, remain top of mind and could impact future performance.
- Channel inventory normalization is expected to take a few quarters longer than initially anticipated.
