Back to top

Image: Bigstock

MaxLinear (MXL) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

MaxLinear (MXL - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 2.

For the fourth quarter, the company expects revenues between $240 million and $250 million. The Zacks Consensus Estimate for the same is pegged at $245.1 million, implying growth of 25.9% from the year-ago reported figure.

Further, the consensus mark for earnings is pegged at 84 cents per share. This indicates a rise of 115.4% from the year-ago reported figure.

MaxLinear beat on earnings in all the trailing four quarters, with the average being 8.7%.

MaxLinear, Inc Price and EPS Surprise

MaxLinear, Inc Price and EPS Surprise

MaxLinear, Inc price-eps-surprise | MaxLinear, Inc Quote

Factors to Consider

Strength across multiple product lines is likely to have benefited MaxLinear’s fourth-quarter performance.

Continuous improvement in supply-chain operations is expected to have remained a positive for the company.

Strong momentum for its Wi-Fi products due to increasing consumer demand for broadband access and connectivity services is likely to have aided MXL’s performance in the to-be-reported quarter.

The company has been winning several platform designs across multiple geographies in new end markets. This might have aided the quarterly performance.

During the quarter, Centec partnered with MaxLinear for leveraging its 2.5G Ethernet Quad-port PHY to meet the next generation Metro and Enterprise network requirements. Also, MaxLinear’s multi-protocol transceivers and interface bridges were selected by Portwell for industrial IoT applications and data center monitoring systems. These are anticipated to have benefited the top line in the quarter under review.

Further, the company’s positive outlook toward 5G revenues, infrastructure revenues and PAM4 products is expected to have been a tailwind in the fourth quarter.

Yet, the global coronavirus-driven economic crisis has been raising volatility in the semiconductor market. This might get reflected in the upcoming quarterly results.

Also, supply chain challenges in the semiconductor industry are expected to have remained concerns in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for MaxLinear this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Endava (DAVA - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.26% from the prior-year reported figure.

Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.

Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.75% from the prior-year reported figure.

Analog Devices (ADI - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2 at present.

Analog Devices is scheduled to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for ADI’s earnings is pegged at $1.79 per share, which suggests an increase of 24.31% from the prior-year reported figure.

Published in