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) delivered third-quarter fiscal 2024 non-GAAP earnings of 66 cents per share, which met the Zacks Consensus Estimate. The bottom line grew 22.3% from the year-ago quarter.
Revenues of $190.5 million surpassed the Zacks Consensus Estimate of $189 million. The top line increased 28.3% from the year-ago quarter, owing to solid momentum across the data center, telecom, and industrial & defense markets.
The company also performed well across all its geographic regions.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
Telecom Market: MTSI generated revenues of $50.6 million (26.6% of the total revenues) from the market, up 31.9% year over year. The figure beat the Zacks Consensus Estimate of $48.02 million.
Data Center Market: The market generated revenues of $49 million (25.7% of the total revenues), up 83.9% from the year-ago quarter. The figure came below the Zacks Consensus Estimate of $49.2 million.
Industrial & Defense Market: MACOM generated revenues of $90.9 million (47.7% of the total revenues) from the market, up 8.8% year over year. The figure missed the Zacks Consensus Estimate of $93 million.
Operating Details
In the third quarter of fiscal 2024, MTSI’s non-GAAP gross margin was 57.5%, which contracted 260 basis points (bps) from the year-ago quarter.
In the reported quarter, non-GAAP operating expenses were $63.9 million, which increased 22.3% from the year-ago quarter. As a percentage of revenues, the figure contracted 170 bps to 33.5%.
Consequently, MTSI’s non-GAAP operating margin was 24%, which contracted 90 bps from the prior-year quarter’s figure.
Balance Sheet
As of Jun 28, 2024, cash equivalents and short-term investments were $521.5 million, up from $476.4 million as of Mar 29, 2024.
Inventories were $190.7 million, up from $177.8 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $447.9 million in the reported quarter compared with $447.7 million in the previous quarter.
Guidance
For fourth-quarter fiscal 2024, MACOM expects revenues between $197 million and $203 million. The Zacks Consensus Estimate for the same is pegged at $196.1 million.
The non-GAAP gross margin is expected to be 57-59%.
MTSI’s adjusted earnings per share are anticipated to be 70-76 cents. The Zacks Consensus Estimate for the same is pegged at 71 cents.
The company also expects a non-GAAP income tax rate of 3% and 75 million fully diluted shares outstanding.
Image: Bigstock
MACOM (MTSI) Q3 Earnings Meet Estimates, Revenues Rise Y/Y
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) delivered third-quarter fiscal 2024 non-GAAP earnings of 66 cents per share, which met the Zacks Consensus Estimate. The bottom line grew 22.3% from the year-ago quarter.
Revenues of $190.5 million surpassed the Zacks Consensus Estimate of $189 million. The top line increased 28.3% from the year-ago quarter, owing to solid momentum across the data center, telecom, and industrial & defense markets.
The company also performed well across all its geographic regions.
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
Top Line in Detail
Telecom Market: MTSI generated revenues of $50.6 million (26.6% of the total revenues) from the market, up 31.9% year over year. The figure beat the Zacks Consensus Estimate of $48.02 million.
Data Center Market: The market generated revenues of $49 million (25.7% of the total revenues), up 83.9% from the year-ago quarter. The figure came below the Zacks Consensus Estimate of $49.2 million.
Industrial & Defense Market: MACOM generated revenues of $90.9 million (47.7% of the total revenues) from the market, up 8.8% year over year. The figure missed the Zacks Consensus Estimate of $93 million.
Operating Details
In the third quarter of fiscal 2024, MTSI’s non-GAAP gross margin was 57.5%, which contracted 260 basis points (bps) from the year-ago quarter.
In the reported quarter, non-GAAP operating expenses were $63.9 million, which increased 22.3% from the year-ago quarter. As a percentage of revenues, the figure contracted 170 bps to 33.5%.
Consequently, MTSI’s non-GAAP operating margin was 24%, which contracted 90 bps from the prior-year quarter’s figure.
Balance Sheet
As of Jun 28, 2024, cash equivalents and short-term investments were $521.5 million, up from $476.4 million as of Mar 29, 2024.
Inventories were $190.7 million, up from $177.8 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $447.9 million in the reported quarter compared with $447.7 million in the previous quarter.
Guidance
For fourth-quarter fiscal 2024, MACOM expects revenues between $197 million and $203 million. The Zacks Consensus Estimate for the same is pegged at $196.1 million.
The non-GAAP gross margin is expected to be 57-59%.
MTSI’s adjusted earnings per share are anticipated to be 70-76 cents. The Zacks Consensus Estimate for the same is pegged at 71 cents.
The company also expects a non-GAAP income tax rate of 3% and 75 million fully diluted shares outstanding.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger Meter (BMI - Free Report) , Arista Networks (ANET - Free Report) and Apple (AAPL - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy) at present, and Arista Networks and Apple carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Badger Meter shares have gained 31.3% in the year-to-date period. The long-term earnings growth rate for BMI is projected at 17.92%.
Arista Networks shares have gained 41.5% in the year-to-date period. The long-term earnings growth rate for ANET is projected at 17.20%.
Apple shares have gained 16.4% in the year-to-date period. The long-term earnings growth rate for AAPL is projected at 12.71%.