MACOM Technology Q3 profit beats on growth strategy execution
MTSI•Analyst sentiment remains positive
The current average analyst rating on the shares is "buy," with 13 "strong buy" or "buy" ratings, 3 "hold" ratings and no "sell" or "strong sell" ratings.
The average consensus recommendation for the semiconductors peer group is "buy."
Wall Street's median 12-month price target for MACOM Technology Solutions Holdings, Inc. is $390.00, about 48% above its August 5 closing price of $263.46. The stock recently traded at 40 times the next 12-month earnings, versus a P/E of 55 three months ago.
Quarterly profit beats on revenue growth
MACOM Technology Solutions Holdings said fiscal third-quarter revenue rose 36% year over year, beating analyst expectations, while adjusted earnings per share also beat estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Beat | $342.24 mln | $335.39 mln (14 Analysts) |
| Q3 Adjusted EPS | Beat | $1.40 | $1.35 (14 Analysts) |
| Q3 Net Income | $100.71 mln | ||
| Q3 Gross Profit | $199.55 mln | ||
| Q3 Income From Operations | $77.12 mln | ||
| Q3 Pretax Profit | $123.85 mln |
The company said results reflected continued execution of its growth strategy, according to CEO Stephen G. Daly.
Fourth-quarter outlook calls for higher revenue and margins
MACOM expects fiscal fourth-quarter revenue between $415 million and $425 million. It also sees adjusted gross margin of 60.0% to 61.0% and forecasts adjusted EPS of $1.97 to $2.03.
