How did LSCC's Q4 earnings surprise impact its annual performance?

Lattice Semiconductor's (LSCC) fourth-quarter (Q4) earnings surprise had a significant impact on its annual performance, although the direct effect is not readily quantifiable due to the lack of disclosed net income data for Q4 alone. However, we can infer the impact through related financial metrics and market reactions. 1. **Impact on Annual Net Income**: Since we don't have Q4's net income, we can't directly calculate the annual net income. But we can infer that Q4's performance, including the earnings surprise, would significantly influence the annual net income, especially given Q3's performance as a benchmark. 2. **Q3 Performance as Benchmark**: Q3's adjusted earnings per share were $0.24, which is a significant figure for the annual performance. The company's gross margin was 69% for both GAAP and non-GAAP, and the non-GAAP operating margin improved to 26.6%. These metrics set a strong baseline for the annual performance. |code|Ticker|Name|Date|Net Income (FY) YoY|Net Income (FY)|market_code| |---|---|---|---|---|---|---| |LSCC|LSCC.O|Lattice Semiconductor|2020|8.964660979927805|4.7392E7|185| |LSCC|LSCC.O|Lattice Semiconductor|2021|102.40124915597568|9.5922E7|185| |LSCC|LSCC.O|Lattice Semiconductor|2022|86.48693730322555|1.78882E8|185| |LSCC|LSCC.O|Lattice Semiconductor|2023|44.82228508178576|2.59061E8|185| |LSCC|LSCC.O|Lattice Semiconductor|2024|-76.40285492605989|6.1131E7|185| 3. **Market Reactions and Guidance**: The Q4 guidance issued by LSCC indicated a potential decline in earnings compared to Q3. The EPS guidance was $0.15 to $0.23, compared to the consensus estimate of $0.26. This suggests that Q4's performance might not meet the high standards set by Q3, potentially leading to a dip in annual earnings. 4. **Revenue Considerations**: While Q3's revenue of $127.1 million missed the analyst consensus by a negligible amount, the Q4 revenue guidance below expectations could affect the annual revenue figure. 5. **Investor Sentiment**: The shares fell after the Q4 guidance was released, indicating investor concerns about the company's short-term prospects. This sentiment could persist if the Q4 performance does not improve or if it signals broader challenges for the company. In conclusion, LSCC's Q4 earnings surprise, though not directly quantifiable, likely had a negative effect on its annual performance, primarily due to the potential decline in earnings and revenue guidance below expectations. The company's strong Q3 performance sets a high standard, and any decline in Q4's financial metrics could significantly impact the annual net income.