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MACOM Q4 Earnings Match Estimates, Revenues Rise Y/Y, Stock Up
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MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported fourth-quarter fiscal 2024 earnings of 73 cents per share, which came in line with the Zacks Consensus Estimate. The figure increased 30.4% year over year.
MACOM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.32%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
MACOM’s revenues increased 33.5% year over year to $200.71 million but marginally missed the Zacks Consensus Estimate by 0.23%.
After reporting its fiscal fourth-quarter earnings, MACOM shares gained more than 14%. Shares of MACOM have plunged 49.7% year to date, outperforming the Zacks Computer & Technology sector’s return of 28.5%.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
Telecom Market: MTSI generated revenues of $51.7 million (25.8% of the total revenues) from the market, up 69% year over year. The telecom segment is growing on the back of high demand for its products used to expand the 5G market in the United States. MACOM is also experiencing significant growth in market share in the satellite communication market especially the Low Earth Orbit satellite-based broadband networking.
Data Center Market: The market generated revenues of $56.2 million (28% of the total revenues), up 38.8% from the year-ago quarter. MACOM’s data center end market is growing on the back of strong demand for its products by Internet service providers.
Industrial & Defense Market: MACOM generated revenues of $92.8 million (17.2% of the total revenues) from the market, up 8.8% year over year. MACOM is experiencing high demand for products, including electronic warfare, secure communications and integrated battlefield systems.
Operating Details
In the fourth quarter of fiscal 2024, MTSI’s non-GAAP gross margin was 58.1%, which contracted 200 basis points (bps) from the year-ago quarter.
In the reported quarter, non-GAAP operating expenses were $65.9 million, which increased 24.1% from the year-ago quarter. As a percentage of revenues, the figure contracted 240 bps to 32.9%.
Consequently, MTSI’s non-GAAP operating margin was 25.2%, which expanded 50 bps from the prior-year quarter’s figure.
Balance Sheet
As of Sept. 27, 2024, cash equivalents and short-term investments were $581.9 million, up from $521.5 million as of June 28, 2024.
Inventories were $194.5 million, up from $190.7 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $448.3 million in the reported quarter compared with $447.9 million in the previous quarter.
Guidance
For first-quarter fiscal 2025, MACOM expects revenues between $212 million and $218 million. The Zacks Consensus Estimate for the same is pegged at $203.3 million.
The non-GAAP gross margin is expected to be 57-59%.
MTSI’s adjusted earnings per share are anticipated to be in the band of 75-81 cents. The Zacks Consensus Estimate for the same is pegged at 72 cents.
The company also expects a non-GAAP income tax rate of 3% and 75 million fully diluted shares outstanding.
The consensus mark for Shopify’s 2024 earnings has been revised upward by 13 cents to $1.12 per share over the past 90 days, indicating a 51.31% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 39.2%. Shares of SHOP have gained 2.7% in the year-to-date period.
The Zacks Consensus Estimate for ANET’s 2024 earnings has been revised upward by 4 cents to $8.28 per share in the past 30 days, indicating an increase of 16.28% on a year-over-year basis. It has a long-term earnings growth expectation of 15.3%. Shares of FTNT have jumped 40.8% in the year-to-date period.
The Zacks Consensus Estimate for CyberArk’s fiscal 2024 earnings has been revised upward by a penny to $2.30 per share in the past seven days, suggesting a year-over-year increase of 105.4%. It has a long-term earnings growth expectation of 33.4%. Shares of CYBR have plunged 21.3% in the year-to-date period.
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MACOM Q4 Earnings Match Estimates, Revenues Rise Y/Y, Stock Up
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported fourth-quarter fiscal 2024 earnings of 73 cents per share, which came in line with the Zacks Consensus Estimate. The figure increased 30.4% year over year.
MACOM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.32%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
MACOM’s revenues increased 33.5% year over year to $200.71 million but marginally missed the Zacks Consensus Estimate by 0.23%.
After reporting its fiscal fourth-quarter earnings, MACOM shares gained more than 14%. Shares of MACOM have plunged 49.7% year to date, outperforming the Zacks Computer & Technology sector’s return of 28.5%.
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
MTSI’s Top Line in Detail
Telecom Market: MTSI generated revenues of $51.7 million (25.8% of the total revenues) from the market, up 69% year over year. The telecom segment is growing on the back of high demand for its products used to expand the 5G market in the United States. MACOM is also experiencing significant growth in market share in the satellite communication market especially the Low Earth Orbit satellite-based broadband networking.
Data Center Market: The market generated revenues of $56.2 million (28% of the total revenues), up 38.8% from the year-ago quarter. MACOM’s data center end market is growing on the back of strong demand for its products by Internet service providers.
Industrial & Defense Market: MACOM generated revenues of $92.8 million (17.2% of the total revenues) from the market, up 8.8% year over year. MACOM is experiencing high demand for products, including electronic warfare, secure communications and integrated battlefield systems.
Operating Details
In the fourth quarter of fiscal 2024, MTSI’s non-GAAP gross margin was 58.1%, which contracted 200 basis points (bps) from the year-ago quarter.
In the reported quarter, non-GAAP operating expenses were $65.9 million, which increased 24.1% from the year-ago quarter. As a percentage of revenues, the figure contracted 240 bps to 32.9%.
Consequently, MTSI’s non-GAAP operating margin was 25.2%, which expanded 50 bps from the prior-year quarter’s figure.
Balance Sheet
As of Sept. 27, 2024, cash equivalents and short-term investments were $581.9 million, up from $521.5 million as of June 28, 2024.
Inventories were $194.5 million, up from $190.7 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $448.3 million in the reported quarter compared with $447.9 million in the previous quarter.
Guidance
For first-quarter fiscal 2025, MACOM expects revenues between $212 million and $218 million. The Zacks Consensus Estimate for the same is pegged at $203.3 million.
The non-GAAP gross margin is expected to be 57-59%.
MTSI’s adjusted earnings per share are anticipated to be in the band of 75-81 cents. The Zacks Consensus Estimate for the same is pegged at 72 cents.
The company also expects a non-GAAP income tax rate of 3% and 75 million fully diluted shares outstanding.
MACOM’s Zacks Rank & Stocks to Consider
MACOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Shopify (SHOP - Free Report) , Arista Network (ANET - Free Report) and CyberArk (CYBR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The consensus mark for Shopify’s 2024 earnings has been revised upward by 13 cents to $1.12 per share over the past 90 days, indicating a 51.31% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 39.2%. Shares of SHOP have gained 2.7% in the year-to-date period.
The Zacks Consensus Estimate for ANET’s 2024 earnings has been revised upward by 4 cents to $8.28 per share in the past 30 days, indicating an increase of 16.28% on a year-over-year basis. It has a long-term earnings growth expectation of 15.3%. Shares of FTNT have jumped 40.8% in the year-to-date period.
The Zacks Consensus Estimate for CyberArk’s fiscal 2024 earnings has been revised upward by a penny to $2.30 per share in the past seven days, suggesting a year-over-year increase of 105.4%. It has a long-term earnings growth expectation of 33.4%. Shares of CYBR have plunged 21.3% in the year-to-date period.