Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting earnings tomorrow before market hours. Here’s what investors should know.

MACOM met analysts’ revenue expectations last quarter, reporting revenues of $200.7 million, up 33.5% year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates.

Is MACOM a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting MACOM’s revenue to grow 36.6% year on year to $214.7 million, a reversal from the 12.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 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 0.4% 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. Texas Instruments’s revenues decreased 1.7% year on year, beating analysts’ expectations by 3.3%, and NXP Semiconductors reported a revenue decline of 9.1%, in line with consensus estimates. Texas Instruments traded down 7.5% following the results while NXP Semiconductors was also down 1.1%.

Read our full analysis of Texas Instruments’s results here and NXP Semiconductors’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the analog semiconductors stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.1% on average over the last month. MACOM is down 2% during the same time and is heading into earnings with an average analyst price target of $147.46 (compared to the current share price of $132.80).

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