MACOM (MTSI) Reports Q3: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2023/08/02 3:57 am EDT

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

Last quarter MACOM reported revenues of $169.4 million, up 2.58% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

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

This quarter analysts are expecting MACOM's revenue to decline 14.5% year on year to $147.4 million, a further deceleration on the 12.9% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share.

MACOM 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 0.63%.

Looking at MACOM's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. ON Semiconductor delivered top-line growth of 0.45% year on year, beating analyst estimates by 3.66% and Lattice Semiconductor reported revenues up 17.8% year on year, exceeding estimates by 1.47%. ON Semiconductor traded down 1.16% on the results, Lattice Semiconductor was up 5.56%. Read our full analysis of ON Semiconductor's results here and Lattice Semiconductor's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 4.69% over the last month. MACOM is up 10.7% during the same time, and is heading into the earnings with analyst price target of $65.4, compared to share price of $69.92.

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