Earnings To Watch: MACOM Technology (MTSI) Reports Q1 Results Tomorrow

Kayode Omotosho /
2022/04/27 8:19 am EDT
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Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be announcing earnings results tomorrow morning. Here's what to look for.

Last quarter MACOM Technology reported revenues of $159.6 million, up 7.48% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in operating margin but a weak topline growth.

Is MACOM Technology buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting MACOM Technology's revenue to grow 8.33% year on year to $163.1 million, slowing down from the 19.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.

MACOM Technology Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.26%.

Looking at MACOM Technology's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Texas Instruments delivered top-line growth of 14.3% year on year, beating analyst estimates by 3.65% and Sensata Technologies reported revenues up 3.52% year on year, exceeding estimates by 1.57%.  Sensata traded flat on the results while Texas Instruments was down 7.51%. Read our full analysis of Texas Instruments's results here and Sensata Technologies's results here.

There has been a stampede out of high valuation technology stocks and semiconductors stocks have not been spared, with share price down on average 15.5% over the last month. MACOM Technology is down 17% during the same time, and is heading into the earnings with analyst price target of $75.8, compared to share price of $51.45.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.