Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting results this Thursday before market open. Here’s what to expect.
MACOM met analysts’ revenue expectations last quarter, reporting revenues of $261.2 million, up 30.1% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter topping analysts’ expectations but an increase in its inventory levels.
Is MACOM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting MACOM’s revenue to grow 23.3% year on year to $269 million, slowing from the 38.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.00 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MACOM has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1% on average.
Looking at MACOM’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Skyworks Solutions’s revenues decreased 3.1% year on year, beating analysts’ expectations by 3.4%, and NXP Semiconductors reported revenues up 7.2%, topping estimates by 0.7%. NXP Semiconductors traded down 4.5% following the results.
Read our full analysis of Skyworks Solutions’s results here and NXP Semiconductors’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 11.2% on average over the last month. MACOM is up 32.5% during the same time and is heading into earnings with an average analyst price target of $212.13 (compared to the current share price of $226.28).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.