We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported fourth-quarter fiscal 2021 non-GAAP earnings of 61 cents per share, beating the Zacks Consensus Estimate by 5.2%. Further, the bottom line improved 52.5% year over year and 7.1% from the previous quarter.
Revenues of $155.2 million surpassed the Zacks Consensus Estimate of $155 million. Moreover, the top line rose 5.4% from the year-ago quarter and 1.7% sequentially.
Top Line in Detail
Telecom Market: The company generated revenues of $46.6 million (30% of total revenues) from the market, down 3% from the previous quarter.
Data Center Market: The market generated revenues of $33.5 million (21.6% of total revenues), which rose 1% from the prior quarter.
Industrial & Defense Market: MACOM generated revenues of $75.1 million (48.4% of total revenues) from the market, which grew 5% sequentially.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
In fourth-quarter fiscal 2021, the non-GAAP gross margin was 61.1%, which expanded 470 basis points (bps) year over year.
In the reported quarter, non-GAAP operating expenses were $48.1 million, which declined 1.6% year over year. As a percentage of revenues, the figure contracted 220 bps to 31%.
Consequently, the company’s non-GAAP operating margin was 30.2%, which expanded 700 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Oct 1, 2021, cash equivalents and short-term investments were $344.9 million, up from $308.9 million as of Jul 2, 2021. Inventories were $82.7 million, down from $83.5 million in the last reported quarter.
Long-term debt obligations, excluding the current portion, were $492.1 million in the reported quarter compared with $492.2 million in the previous quarter.
Cash generated from operations was $40.8 million, down from $44.9 million in the last reported quarter.
The company’s free cash flow in the reported quarter was $35.8 million.
Guidance
For first-quarter fiscal 2022, MACOM expects revenues between $157 million and $161 million. The Zacks Consensus Estimate for the same is pegged at $158.09 million.
The company’s adjusted earnings per share are anticipated to be 60-64 cents. The Zacks Consensus Estimate for the same is pegged at 53 cents.
The non-GAAP gross margin is anticipated to be 60-62%.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Advanced Micro Devices (AMD - Free Report) , PerkinElmer and Mimecast Ltd. . While Advanced Micro Devices sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Mimecast carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Advanced Micro Devices, PerkinElmer, and Mimecast are currently projected at 46.2%, 41.7%, and 35%, respectively.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
MACOM (MTSI) Q4 Earnings & Revenues Beat Estimates, Rise Y/Y
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported fourth-quarter fiscal 2021 non-GAAP earnings of 61 cents per share, beating the Zacks Consensus Estimate by 5.2%. Further, the bottom line improved 52.5% year over year and 7.1% from the previous quarter.
Revenues of $155.2 million surpassed the Zacks Consensus Estimate of $155 million. Moreover, the top line rose 5.4% from the year-ago quarter and 1.7% sequentially.
Top Line in Detail
Telecom Market: The company generated revenues of $46.6 million (30% of total revenues) from the market, down 3% from the previous quarter.
Data Center Market: The market generated revenues of $33.5 million (21.6% of total revenues), which rose 1% from the prior quarter.
Industrial & Defense Market: MACOM generated revenues of $75.1 million (48.4% of total revenues) from the market, which grew 5% sequentially.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
MACOM Technology Solutions Holdings, Inc. price-consensus-eps-surprise-chart | MACOM Technology Solutions Holdings, Inc. Quote
Operating Details
In fourth-quarter fiscal 2021, the non-GAAP gross margin was 61.1%, which expanded 470 basis points (bps) year over year.
In the reported quarter, non-GAAP operating expenses were $48.1 million, which declined 1.6% year over year. As a percentage of revenues, the figure contracted 220 bps to 31%.
Consequently, the company’s non-GAAP operating margin was 30.2%, which expanded 700 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Oct 1, 2021, cash equivalents and short-term investments were $344.9 million, up from $308.9 million as of Jul 2, 2021. Inventories were $82.7 million, down from $83.5 million in the last reported quarter.
Long-term debt obligations, excluding the current portion, were $492.1 million in the reported quarter compared with $492.2 million in the previous quarter.
Cash generated from operations was $40.8 million, down from $44.9 million in the last reported quarter.
The company’s free cash flow in the reported quarter was $35.8 million.
Guidance
For first-quarter fiscal 2022, MACOM expects revenues between $157 million and $161 million. The Zacks Consensus Estimate for the same is pegged at $158.09 million.
The company’s adjusted earnings per share are anticipated to be 60-64 cents. The Zacks Consensus Estimate for the same is pegged at 53 cents.
The non-GAAP gross margin is anticipated to be 60-62%.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Advanced Micro Devices (AMD - Free Report) , PerkinElmer and Mimecast Ltd. . While Advanced Micro Devices sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Mimecast carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Advanced Micro Devices, PerkinElmer, and Mimecast are currently projected at 46.2%, 41.7%, and 35%, respectively.