Earnings To Watch: MACOM Technology (MTSI) Reports Q2 Results Tomorrow

Adam Hejl /
2023/05/03 3:27 am EDT
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Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting earnings tomorrow morning. Here's what to look for.

Last quarter MACOM Technology reported revenues of $180.1 million, up 12.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in operating margin but underwhelming revenue guidance for the next quarter.

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 1.76% year on year to $168.1 million, slowing down from the 9.67% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 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 0.58%.

Looking at MACOM Technology's peers in the analog semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. ON Semiconductor delivered top-line growth of 0.76% year on year, beating analyst estimates by 1.79% and Texas Instruments reported revenue decline of 10.7% year on year, exceeding estimates by 0.22%. ON Semiconductor traded up 4.48% on the results, Texas Instruments was down 0.68%. Read our full analysis of ON Semiconductor's results here and Texas Instruments's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 7.46% over the last month. MACOM Technology is down 14% during the same time, and is heading into the earnings with analyst price target of $74.2, compared to share price of $57.26.

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.