Lattice Semiconductor Corp: 5G Stock Up 132% YoY; Reports Strong Q1 Results

Lattice Semiconductor Stock Is an Overlooked, Bullish 5G Stock

Lattice Semiconductor Corp (NASDAQ:LSCC) is a stealth 5G stock that has been quietly trouncing the broader market for the last two years.

LSCC stock has advanced 220% since bottoming in March 2020. It’s also up 132% year-over-year, 27% over the last six months, and approximately 620% since the start of 2019.

Massive gains indeed, but Lattice Semiconductor stock is, by all accounts, just getting warmed up. The company reported strong full-year 2019 and 2020 financial results, with that momentum carrying into this year.

Investors aren’t the only ones bullish on Lattice Semiconductor Corp. The company’s recent inclusion in the S&P 500 MidCap 400 is a recognition of Lattice Semiconductor’s solid financial performance, innovation, and great outlook.

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LSCC Stock Overview

Lattice Semiconductor is the leading provider of low-power programmable, smart-connectivity technology. The company helps its customers solve problems across the entire network, from the Edge to the Cloud. (Source: “Corporate Overview,” Lattice Semiconductor Corp, last accessed May 6, 2021.)

As the world’s largest supplier of low-power field-programmable gate array (FPGA) products by volume, Lattice Semiconductor has a big presence in lucrative, niche end markets that include communications, computing, industrial, automotive, and consumer.

Its product development activities include new products, advanced packaging, product enhancements, software development tools, soft intellectual property, and system solutions for high-growth applications such as Edge artificial intelligence, 5G infrastructure, platform security, and factory automation.

Strong Q1 Results

For the first quarter of fiscal 2021, ended April 3, Lattice Semiconductor announced that its revenue increased 19% year-over-year and eight percent quarter-over-quarter to $115.7 million. (Source: Lattice Semiconductor Reports First Quarter 2021 Results,” Lattice Semiconductor Corp, May 4, 2021.)

The company’s net income climbed 130.5% year-over-year and 18% sequentially to $18.8 million, or $0.14 per share. Its adjusted net income went up 52% year-over-year and 11.5% quarter-over-quarter to $30.7 million, or $0.22 per share.

Lattice Semiconductor Corp’s first-quarter gross margin expanded to 61.0% from 59.1% in the same period last year and 60.5% in the previous quarter. The higher the gross margin, the more capital a company keeps on each dollar of sales.

Lattice Semiconductor also reported a record operating profit of 17.8%, versus 10.0% in the same prior-year period and 16.2% in the fourth quarter of 2020. The company’s adjusted operating profit was 28.0%, compared to 22.7% in the same prior-year period and 26.6% in the previous quarter.

Business Outlook

For the second quarter of 2021, Lattice Semiconductor Corp expects to report:

  • Revenue between $116.0 and $124.0 million, compared to $100.5 million in Q2 2020
  • Adjusted gross margin of approximately 62%, compared to 61.3% in Q2 2020
  • Adjusted total operating expenses between $40.5 and 41.5 million, compared to $36.6 million in Q2 2020

Analyst Take

What’s not to love about Lattice Semiconductor Corp?

In 2020, a year when the global economy was brought to its knees, Lattice Semiconductor stock still managed to climb by a whopping 140%. It looks like 2021 could be just as beneficial for LSCC stock investors. The company has a strong balance sheet and continues to report even better financial results.