Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting earnings this Thursday before market open. Here’s what investors should know.
MACOM beat analysts’ revenue expectations last quarter, reporting revenues of $289 million, up 22.5% year on year. It was a strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a decent 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 33.2% year on year, in line with the 32.3% 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 Q2 results, giving us a hint as to what we can expect. Monolithic Power Systems delivered year-on-year revenue growth of 47.6%, beating analysts’ expectations by 8.6%, and Impinj reported revenues up 10.7%, topping estimates by 3.5%. Monolithic Power Systems traded up 8.3% following the results while Impinj was also up 5.9%.
Read our full analysis of Monolithic Power Systems’s results here and Impinj’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the analog semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.3% on average over the last month. MACOM is down 16.6% during the same time and is heading into earnings with an average analyst price target of $400.92 (compared to the current share price of $273.30).
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