MACOM Technology (MTSI) Q4 Earnings: What To Expect

Adam Hejl /
2022/11/02 3:39 am EDT

Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting earnings tomorrow before the bell. Here's what to look for.

Last quarter MACOM Technology reported revenues of $172.2 million, up 12.8% year on year, beating analyst revenue expectations by 1.3%. It was a decent quarter for the company, with a significant improvement in operating margin but an increase in inventory levels.

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 14.2% year on year to $177.3 million, improving on the 5.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 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 0.64%.

Looking at MACOM Technology's peers in the analog semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Texas Instruments delivered top-line growth of 12.8% year on year, beating analyst estimates by 1.9% and ON Semiconductor reported revenues up 25.8% year on year, exceeding estimates by 3.58%. Texas Instruments traded down 4.74% on the results, ON Semiconductor was down 2.09%. Read our full analysis of Texas Instruments's results here and ON Semiconductor's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 5.12% over the last month. MACOM Technology is up 12.6% during the same time, and is heading into the earnings with analyst price target of $66.4, compared to share price of $58.97.

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.