MACOM Earnings: What To Look For From MTSI

Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting earnings tomorrow morning. Here's what to expect.

MACOM met analysts' revenue expectations last quarter, reporting revenues of $181.2 million, up 7% year on year. It was a weaker quarter for the company, with a decline in its gross margin.

Is MACOM a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting MACOM's revenue to grow 28.2% year on year to $190.4 million, a reversal from the 13.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.

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, beating revenue estimates every single time over the past two years by 0.8% on average.

Looking at MACOM's peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 19.2%, beating analysts' expectations by 5.2%, and Sensata Technologies reported a revenue decline of 2.5%, in line with consensus estimates. Impinj traded up 4.6% following the results while Sensata Technologies's stock price was unchanged.

Read our full analysis of Impinj's results here and Sensata Technologies's results here.

Inflation fears have put pressure on growth stocks, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 7.3% on average over the last month. MACOM is down 14.1% during the same time and is heading into earnings with an average analyst price target of $114.5 (compared to the current share price of $95.98).

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