Lattice Semiconductor Stock: Beaten-Down 5G Company Reports Record Q2

LSCC Stock Down 34% But Could Double Within a Year

The only good thing about stocks getting hammered is that it puts shares of excellent companies like Lattice Semiconductor Corp (NASDAQ:LSCC) in a better trading range.

One of the best 5G companies, the company continually reports outstanding financial results, expands its product portfolio, adds new clients, and provides strong guidance.

Moreover, Lattice Semiconductor stock recently moved up to the large-cap Russell 1000 Index, and the company announced its seventh consecutive quarter of share buybacks.

For these continued successes, LSCC stock is down by 34% in 2022 and 23% year-over-year. In comparison, the tech-heavy Nasdaq is down by 26% in 2022 and 13% year-over-year.

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Suffice it to say, investors have overreacted with Lattice Semiconductor stock. Even conservative Wall Street agrees; analysts have a 12-month average share-price estimate of $75.17 and a high estimate of $95.00. This points to potential upside for LSCC stock of approximately 45% to 85%.

Chart courtesy of StockCharts.com

About Lattice Semiconductor Corp

From the Edge to the Cloud, Lattice Semiconductor solves some of the biggest technological challenges around the world. The company is the leading provider of programmable smart-connectivity technology.

Lattice Semiconductor Corp helps its 8,000 customers implement their own designs, lower their development costs, and improve their overall time to market.

The company operates in a variety of growing end markets, including automotive (infotainment and advanced driver assistance), communications (5G wireless and switches/routers), computing (servers and client), consumer and broadcasting (smartphones, wearables, and smart homes), and industrial (Internet of Things and factory automation). (Source: “Corporate Overview: August 2022,” Lattice Semiconductor Corp, last accessed September 28, 2022.)

Five of Lattice Semiconductor Corp’s blue-chip customers are Amazon.com, Inc. (NASDAQ:AMZN), Cisco Systems Inc (NASDAQ:CSCO), Ford Motor Company (NYSE:F), Raytheon Technologies Corp (NYSE:RTX), and Sony Group Corp (NYSE:SONY).

Record Q2 Revenue; Earnings Up 104% Year-Over-Year

Lattice Semiconductor started 2022 with high first-quarter revenue and earnings growth. That momentum continued in the second quarter, with its revenue going up by 28% year-over-year and seven percent sequentially to a record $161.3 million. (Source: “Lattice Semiconductor Reports Second Quarter 2022 Results,” Lattice Semiconductor Corp, August 1, 2022.)

The company’s second-quarter 2022 net income jumped by 104% year-over-year and 23% sequentially to $44.5 million. Its net income per share went up by 113% year-over-year from $0.26 to $0.32.

Sherri Luther, Lattice Semiconductor Corp’s CFO, commented, “We continued to drive strong cash flow generation, while executing our seventh consecutive quarter of share buybacks.” (Source: Ibid.)

Analyst Take

Lattice Semiconductor Corp has been doing everything right. Unfortunately, stock investors haven’t been rewarding it for performing exceptionally well during one of the worst macroeconomic environments.

Eventually, the economic headwinds (which haven’t even been hurting the company) will subside and investors will finally see the light on this beaten-down 5G stock that Wall Street is bullish on. At that point, Lattice Semiconductor could jump in value.