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 $165.1 million, up 9.67% year on year, beating analyst revenue expectations by 1.23%. It was a solid quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter above analysts' estimates.
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 11.4% year on year to $170 million, in line with the 11.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.
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 1.06%.
Looking at MACOM Technology's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. NXP Semiconductors delivered top-line growth of 27.5% year on year, beating analyst estimates by 1.43% and Texas Instruments reported revenues up 13.7% year on year, exceeding estimates by 12.1%. NXP Semiconductors traded flat on the results, and Texas Instruments was up 1.34% on the results. Read our full analysis of NXP Semiconductors's results here and Texas Instruments's results here.
There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 3.56% over the last month. MACOM Technology is up 5.21% during the same time, and is heading into the earnings with analyst price target of $64.7, compared to share price of $52.45.
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The author has no position in any of the stocks mentioned.