Latest news with #MACOMTechnologySolutions
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
06-02-2025
- Business
- Yahoo
MACOM's (NASDAQ:MTSI) Q4 Sales Top Estimates, Provides Encouraging Quarterly Revenue Guidance
Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) reported Q4 CY2024 results topping the market's revenue expectations , with sales up 38.8% year on year to $218.1 million. Guidance for next quarter's revenue was optimistic at $230 million at the midpoint, 2.1% above analysts' estimates. Its non-GAAP profit of $0.79 per share was in line with analysts' consensus estimates. Is now the time to buy MACOM? Find out in our full research report. Revenue: $218.1 million vs analyst estimates of $214.7 million (38.8% year-on-year growth, 1.6% beat) Adjusted EPS: $0.79 vs analyst estimates of $0.78 (in line) Adjusted EBITDA: $62.16 million vs analyst estimates of $66.17 million (28.5% margin, 6.1% miss) Revenue Guidance for Q1 CY2025 is $230 million at the midpoint, above analyst estimates of $225.2 million Adjusted EPS guidance for Q1 CY2025 is $0.84 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 8%, up from 7% in the same quarter last year Free Cash Flow Margin: 28.1%, up from 18.1% in the same quarter last year Inventory Days Outstanding: 179, down from 195 in the previous quarter Market Capitalization: $10.09 billion 'Q1 was a good start to our fiscal 2025,' said Stephen G. Daly, President and Chief Executive Officer, MACOM. 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. Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years. A company's long-term sales performance signals its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, MACOM's sales grew at a solid 11% 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 6.6% over the last two years is below its five-year trend, but we still think the results were good and suggest demand was strong. This quarter, MACOM reported wonderful year-on-year revenue growth of 38.8%, and its $218.1 million of revenue exceeded Wall Street's estimates by 1.6%. Company management is currently guiding for a 26.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 19.2% over the next 12 months, an improvement versus the last two years. This projection is healthy and indicates its newer products and services will spur 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 179, which is 23 days above its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are higher than what we've seen in the past. We were impressed by MACOM's strong improvement in inventory levels. We were also glad its revenue guidance for next quarter came in higher than Wall Street's estimates. Overall, this quarter had some key positives. The stock traded up 3.3% to $140 immediately following the results. Indeed, MACOM had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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