Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be announcing earnings results tomorrow morning. Here’s what to look for.
MACOM beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $218.1 million, up 38.8% year on year. It was a satisfactory quarter for the company, with a significant improvement in its inventory levels.
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 26.9% year on year to $230 million, improving from the 7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 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 0.5% on average.
Looking at MACOM’s peers in the analog semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 4.1%, and Impinj reported a revenue decline of 3.3%, topping estimates by 3.7%. Texas Instruments traded up 6.7% following the results while Impinj was also up 16.9%.
Read our full analysis of Texas Instruments’s results here and Impinj’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 22.4% on average over the last month. MACOM is up 26.4% during the same time and is heading into earnings with an average analyst price target of $136.12 (compared to the current share price of $110.80).
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