Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
MACOM beat analysts’ revenue expectations last quarter, reporting revenues of $342.2 million, up 35.8% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ operating income estimates.
Is MACOM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting MACOM’s revenue to grow 61% year on year, improving from the 30.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. MACOM has a history of exceeding Wall Street’s expectations.
Looking at MACOM’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 16.7%, beating analysts’ expectations by 4.4%, and Monolithic Power Systems reported revenues up 63.1%, topping estimates by 3.4%. Impinj traded up 3.4% following the results while Monolithic Power Systems was also up 1.4%.
Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). Investors in analog semiconductors stocks haven’t been spared in this environment as share prices are down 19% on average over the last month. MACOM is down 28.8% during the same time and is heading into earnings with an average analyst price target of $384.69 (compared to the current share price of $233.61).
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