Latest news with #MACOM
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Analysts Offer Insights on Technology Companies: Lyft (LYFT), MACOM Technology Solutions Holdings (MTSI) and RingCentral (RNG)
Analysts have been eager to weigh in on the Technology sector with new ratings on Lyft (LYFT – Research Report), MACOM Technology Solutions Holdings (MTSI – Research Report) and RingCentral (RNG – Research Report). Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Lyft (LYFT) Evercore ISI analyst Mark Mahaney maintained a Hold rating on Lyft on May 9 and set a price target of $15.00. The company's shares closed last Friday at $16.65. According to Mahaney is a 5-star analyst with an average return of 15.4% and a 55.5% success rate. Mahaney covers the Technology sector, focusing on stocks such as WEBTOON Entertainment Inc, Uber Technologies, and Trade Desk. ;'> Lyft has an analyst consensus of Hold, with a price target consensus of $16.02, implying a 9.3% upside from current levels. In a report issued on May 9, Roth MKM also maintained a Hold rating on the stock with a $16.00 price target. MACOM Technology Solutions Holdings (MTSI) In a report issued on May 9, Mark Lipacis from Evercore ISI maintained a Buy rating on MACOM Technology Solutions Holdings, with a price target of $146.00. The company's shares closed last Friday at $118.08. According to Lipacis is a top 100 analyst with an average return of 20.7% and a 59.9% success rate. Lipacis covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Allegro MicroSystems, and GlobalFoundries Inc. ;'> MACOM Technology Solutions Holdings has an analyst consensus of Strong Buy, with a price target consensus of $141.11, a 16.9% upside from current levels. In a report issued on May 8, Needham also maintained a Buy rating on the stock with a $150.00 price target. RingCentral (RNG) In a report issued on May 9, Peter Levine from Evercore ISI maintained a Hold rating on RingCentral, with a price target of $30.00. The company's shares closed last Friday at $27.72, close to its 52-week low of $25.47. According to Levine is a 4-star analyst with an average return of 12.2% and a 55.8% success rate. Levine covers the Technology sector, focusing on stocks such as Zoom Video Communications, CrowdStrike Holdings, and Palo Alto Networks. ;'> The word on The Street in general, suggests a Moderate Buy analyst consensus rating for RingCentral with a $33.31 average price target, a 24.1% upside from current levels. In a report issued on May 8, Morgan Stanley also maintained a Hold rating on the stock with a $29.00 price target.
Yahoo
08-05-2025
- Business
- Yahoo
MACOM (NASDAQ:MTSI) Beats Q1 Sales Targets, Stock Soars
Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 30.2% year on year to $235.9 million. On top of that, next quarter's revenue guidance ($250 million at the midpoint) was surprisingly good and 5.7% above what analysts were expecting. Its non-GAAP profit of $0.85 per share was in line with analysts' consensus estimates. Is now the time to buy MACOM? Find out in our full research report. Revenue: $235.9 million vs analyst estimates of $230 million (30.2% year-on-year growth, 2.6% beat) Adjusted EPS: $0.85 vs analyst estimates of $0.84 (in line) Adjusted EBITDA: $66.61 million vs analyst estimates of $67.8 million (28.2% margin, 1.8% miss) Revenue Guidance for Q2 CY2025 is $250 million at the midpoint, above analyst estimates of $236.6 million Adjusted EPS guidance for Q2 CY2025 is $0.89 at the midpoint, above analyst estimates of $0.87 Operating Margin: 14.8%, up from 8.5% in the same quarter last year Free Cash Flow Margin: 12.9%, up from 7.2% in the same quarter last year Inventory Days Outstanding: 180, up from 179 in the previous quarter Market Capitalization: $8.43 billion Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, MACOM's sales grew at an impressive 12.6% compounded annual growth rate over the last five years. Its growth beat the average semiconductor company and shows its offerings resonate with customers, a helpful starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. MACOM's annualized revenue growth of 9.9% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. This quarter, MACOM reported wonderful year-on-year revenue growth of 30.2%, and its $235.9 million of revenue exceeded Wall Street's estimates by 2.6%. Beyond the beat, this marks 5 straight quarters of growth, implying that MACOM is in the middle of its cycle - a typical upcycle generally lasts 8-10 quarters. Company management is currently guiding for a 31.2% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 16.3% over the next 12 months, an improvement versus the last two years. This projection is commendable and indicates its newer products and services will fuel better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, MACOM's DIO came in at 180, which is 23 days above its five-year average, suggesting that the company's inventory has grown to higher levels than we've seen in the past. It was great to see MACOM's revenue guidance for next quarter top analysts' expectations. We were also happy its revenue outperformed Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 7.1% to $121.50 immediately following the results. Sure, MACOM had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
21-04-2025
- Business
- Yahoo
MACOM Technology Solutions Holdings Inc (MTSI) Q1 2025 Earnings Call Highlights: Record Revenue ...
Revenue: $218 million for Q1 fiscal 2025. Adjusted EPS: $0.79 per diluted share. Free Cash Flow: Approximately $63 million for Q1. Cash and Short-term Investments: Approximately $657 million at quarter end. Revenue by End Market: Industrial and defense: $97.4 million; Data Center: $65.3 million; Telecom: $55.4 million. Sequential Revenue Growth: Data Center up 16%, Telecom up 7%, Industrial and Defense up 5%. Book-to-Bill Ratio: 1.1:1 for Q1. Adjusted Gross Profit: $125.3 million or 57.5% of revenue. Adjusted Operating Expense: $69.9 million. Adjusted Operating Income: $55.4 million. Adjusted Net Income: $59.5 million. Accounts Receivable: $91.8 million, down from $105.7 million in Q4 2024. Inventory: $198.4 million at quarter end. Cash Flow from Operations: Approximately $66.7 million for Q1. Capital Expenditures: $5.3 million for Q1. Warning! GuruFocus has detected 3 Warning Sign with MTSI. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI) reported a record high revenue of $218 million for the first fiscal quarter of 2025, with an adjusted EPS of $0.79 per diluted share. The company achieved a strong free cash flow of approximately $63 million in Q1, contributing to a cash and short-term investments balance of $657 million. The data center market segment showed significant growth, with revenues up 16% sequentially, driven by strong demand for 800 gig optical products. MACOM's book-to-bill ratio was 1.1:1, indicating strong order activity and a record-level backlog. The company is strategically positioned to capture market share in its targeted end markets, with plans to introduce new product lines and technologies in 2025. Gross margins for the first quarter were below targets at 57.5%, impacted by lower wafer volumes and underabsorbed costs in the Lowell fab. The telecom market segment experienced some weakness, affecting overall utilization and contributing to lower gross margins. Despite strong growth in the data center segment, there is a potential slowdown in 800 gig demand as customers transition to 1.6T, which could impact future growth rates. The company faces challenges in maintaining high utilization rates in its Lowell fab, which is crucial for improving gross margins. There is uncertainty regarding the impact of government funding and CHIPS Act initiatives on MACOM's long-term investment plans and financial performance. Q: Can you update us on the progress with ACC in the data center market and the potential inflection point in mid-2025? Also, what are your thoughts on LPO and its opportunities compared to ACC? A: Stephen Daly, CEO: The data center market is performing well, with significant growth driven by our optical portfolio, particularly the 800 gig products. We anticipate a slowdown in 800 gig as customers transition to 1.6T. ACC remains a game changer, with interest from a broad customer base, despite some architecture changes. LPO, a solution without DSP, is also gaining interest, especially at higher data rates like 800 gig and 1.6T, and is expected to contribute in late 2025 and 2026. Q: Could you provide more color on the DoD satellite programs and the revenue opportunity in the satellite communication space over the next few years? A: Stephen Daly, CEO: We see strong demand from both established and new satellite manufacturers, driven by global broadband services and DoD needs. Opportunities exist in high-frequency bands like E-band, V-band, and Ku-band, where MACOM can provide leading RF and microwave solutions. Our involvement spans analog mixed-signal devices, optical solutions, and linearized SSPAs, with significant growth potential in both commercial and defense sectors. Q: How do you view the spending expectations in the data center market over the next few years, given industry changes? A: Stephen Daly, CEO: We remain bullish on data center expansion and capital spending. We support customers with high data rate products and plan to provide more optical solutions. Our strong 200 gig per lane PD and CW laser products will add revenue in 2025 and 2026. We also see opportunities in PCIe 6 and PCIe 7 connectivity, where we offer both electrical and optical solutions. Q: Can you discuss the impact of the Lowell fab modernization and North Carolina fab expansion on your operations and gross margins? A: Stephen Daly, CEO: The Lowell fab modernization will improve infrastructure, replace antiquated equipment, and add a small six-inch GaN on silicon carbide line, enhancing yields and capacity. The North Carolina expansion will address capacity issues by installing a six-inch line and an MOCVD reactor for advanced epi. These long-term investments, supported by the CHIPS program, will strengthen MACOM's market position without immediate P&L impact. Q: What are your expectations for the data center business in fiscal 2025, particularly regarding the transition from 800 gig to 1.6T and the role of LPO? A: Stephen Daly, CEO: We expect strong growth in the data center market, driven by the transition to 1.6T and continued contributions from LPO and ACC. While 800 gig has been a significant revenue driver, we anticipate a shift to 1.6T in the back half of the year. LPO solutions will also contribute, with interest primarily at higher data rates. Overall, we foresee a record year for MACOM in this segment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
02-04-2025
- Business
- Yahoo
MACOM (MTSI): Buy, Sell, or Hold Post Q4 Earnings?
Over the past six months, MACOM's shares (currently trading at $100.51) have posted a disappointing 7.4% loss while the S&P 500 was down 1.6%. This might have investors contemplating their next move. Following the drawdown, is now the time to buy MTSI? Find out in our full research report, it's free. Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, MACOM's sales grew at a solid 11% compounded annual growth rate over the last five years. Its growth surpassed the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. MACOM's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. As you can see below, MACOM's margin dropped by 5.3 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. MACOM's free cash flow margin for the trailing 12 months was 21.9%. MACOM has huge potential even though it has some open questions. After the recent drawdown, the stock trades at 27.8× forward price-to-earnings (or $100.51 per share). Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
Aloe Semiconductor showcases 160-Gbaud PAM4 from a silicon-photonic modulator at OFC 2025
Aloe Semiconductor, Inc.'s demonstration is supported by Advanced Micro Foundry, MACOM, and Broadcom MIDDLETOWN, NJ / / April 1, 2025 / Aloe Semiconductor, Inc. will showcase a 160-Gbaud PAM4 (320-Gb/s) from a silicon-photonic (SiPh) modulator at the Optical Fiber Communication (OFC) conference in San Francisco, CA the week of March 31, 2025. Aloe Semiconductor's innovative design allows silicon photonics to reach the next jump in bit rate per lane without having to add non-CMOS materials, such as LiNbO3, polymer, gold, or III-V elements. In optical input/output (OIO) and co-packaged optics (CPO), advanced silicon packaging plays a large role, and continuing to use pure silicon for the photonics, instead of adding new materials, will shorten the time to market. Aloe's new design will be especially important for these applications, allowing for high speeds at low cost. "We show that with innovative design, silicon photonic modulators can move well beyond 106 Gbaud, allowing the next generation to continue taking advantage of silicon's integration capability, advanced packaging compatibility, and fast time to market," said Aloe's CEO Christopher (Chris) Doerr. The enabling technology is a novel SiPh Mach-Zehnder modulator (MZM) design that increases bandwidth without trade-offs in loss or required voltage drive. It requires only conventional silicon processing, saving power and cost. In this demonstration, the modulator is driven by a high-bandwidth open-collector driver from MACOM. The driver and modulator are flip-chipped side-by-side on a high-density substrate. The electrical input signal is generated by a Keysight AWG 8199B and the optical signal is received by a Keysight 1032A. The 160-Gbaud PAM4 eye diagram is shown below. With this demonstration, Aloe continues to pave the way to higher speeds, using silicon photonics technology to create radically new, application-specific solutions for optical communications. The demonstration is running at MACOM booth #2028. Please contact Chris at cdoerr@ for more details. Aloe Semiconductor was founded in 2022 by former Acacia Communications Associate Vice President of Advanced Development Christopher Doerr and is based in New Jersey, USA. Find out more about the company here: About Aloe Semiconductor, Inc. Aloe Semiconductor, Inc. (Aloe) is a semiconductor design company that provides best-in-class photonic integrated circuits using silicon photonics technology for optical communications. Founded in 2022, Aloe Semiconductor is creating industry-leading, high performance,application-specific silicon photonics and electronics solutions, helping networks to scale from 212G to 425G and 850G using ground-breaking dual-polarization technology. Contact Details Wilkinson + AssociatesMrs Leah F Wilkinson+1 703-907-0010leah@ Company Website SOURCE: Aloe Semiconductor View the original press release on ACCESS Newswire Sign in to access your portfolio
