MACOM (MTSI) Q1 Earnings: What To Expect

Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting results this Thursday before the bell. Here’s what investors should know.

MACOM beat analysts’ revenue expectations last quarter, reporting revenues of $271.6 million, up 24.5% year on year. It was a strong quarter for the company, with revenue guidance for next quarter topping analysts’ expectations and an impressive beat of analysts’ adjusted 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 21% year on year, slowing from the 30.2% increase it recorded in the same quarter last year.

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.

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 18.6%, beating analysts’ expectations by 6.6%, and Skyworks Solutions reported flat revenue, topping estimates by 4.6%. Texas Instruments traded up 19.4% following the results.

Read our full analysis of Texas Instruments’s results here and Skyworks Solutions’s results here.

There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 42.2% on average over the last month. MACOM is up 28.9% during the same time and is heading into earnings with an average analyst price target of $283.29 (compared to the current share price of $300.48).

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.