Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting earnings this Thursday before market hours. Here’s what to look for.
MACOM beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $235.9 million, up 30.2% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ EPS estimates but an increase 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 31.1% year on year to $249.7 million, improving from the 28.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.90 per share.
The majority of analysts covering the company have 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 0.9% on average.
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. Skyworks Solutions delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 2.6%, and Impinj reported a revenue decline of 4.5%, topping estimates by 4.3%. Impinj traded up 26.2% following the results.
Read our full analysis of Skyworks Solutions’s results here and Impinj’s results here.
Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. MACOM’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $147.29 (compared to the current share price of $137.75).
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