Lattice Semiconductor (NASDAQ:LSCC) shares dropped more than 17% in early New York trading on Tuesday after the company reported Q3 results and offered an underwhelming guidance. The Q3 EPS of $0.53 and revenues of $192.17 million came in better than the consensus estimates of $0.52 and $192.08M, respectively.
"We delivered another quarter of solid growth, with Q3 2023 revenue and net income increasing 11% on a year-over-year basis. Today Lattice has the strongest product portfolio in our 40-year history and we continue to rapidly expand our product lineup,” said CEO Jim Anderson.
For Q4/23, the company expects revenue to be in the range of $166M-$186M, missing the consensus estimate of $195.8M.
The company attributed weakness in its outlook to softening demand in several industries, including autos.
KeyBanc analysts slashed the price target by $30 to $80 per share.
"We remain Overweight, and continue to see outsized growth opportunities via share gains and the ramp of Avant," they said.
Similarly, BofA analysts slashed the price target to $72 per share on the Neutral-rated LSCC stock.
"While revised expectations in place likely more achievable, we lower our PO to $72 (from $90) on unch. 35x CY24 P/E (in line with prior and with 5-yr average)," the analysts wrote.
(Additional reporting by Senad Karaahmetovic)