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MACOM (MTSI) Q2 Earnings & Revenues Top Estimates, Rise Y/Y

MACOM Technology Solutions Holdings, Inc. MTSI reported second-quarter fiscal 2023 non-GAAP earnings of 79 cents per share, beating the Zacks Consensus Estimate by 2.6%. Further, the bottom line improved by 16.2% from the year-ago quarter’s reported figure.

Revenues of $169.41 million surpassed the Zacks Consensus Estimate by 0.9%. Moreover, the top line rose 2.6% from the year-ago quarter’s figure.

Top-line growth was driven by the company’s strong performance across Data Center and Industrial and Defense markets.

Top Line in Detail

Telecom Market: MTSI generated revenues of $53.9 million (31.8% of the total revenues) from the market, down 14.4% year over year.

Data Center Market: The market generated revenues of $38.3 million (22.6% of the total revenues), up 9.2% from the year-ago quarter.

Industrial & Defense Market: MACOM generated revenues of $77.2 million (45.6% of the total revenues) from the market, up 15% year over year.

MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise

 

MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
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 second-quarter fiscal 2023, the non-GAAP gross margin was 62.1%, which expanded 40 basis points (bps) from the year-ago fiscal quarter’s reported figure.

In the reported quarter, non-GAAP operating expenses were $48.6 million, which decreased 4.7% from the year-ago fiscal quarter’s reported figure. As a percentage of revenues, the figure contracted 220 bps to 28.7%.

Consequently, MTSI’s non-GAAP operating margin was 33.4%, which increased 260 bps from the prior-year quarter’s figure.

Balance Sheet

As of Mar 31, 2023, cash equivalents and short-term investments were $577.3 million, down from $594.7 million as of Dec 30, 2022.

Inventories were $131.9 million, up from $121.3 million in the previously reported quarter.

Long-term debt obligations, excluding the current portion, were $566.7 million in the reported quarter compared with $566.3 million in the previous quarter.

Guidance

For third-quarter fiscal 2023, MACOM expects revenues between $145 million and $150 million.

MTSI’s adjusted earnings per share are anticipated to be within 52-56 cents. The Zacks Consensus Estimate for the same is pegged at 73 cents.

The non-GAAP gross margin is anticipated to be 59-61%.

Zacks Rank & Stocks to Consider

Currently, MACOM has a Zacks Rank #2 (Buy).

Investors interested in the broader technology sector can consider some other top-ranked stocks like Agilent Technologies A, DigitalOcean DOCN and Paycor HCM PYCR, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, implying growth of 12.4% from the year-ago quarter’s reported figure. A has lost 11.6% in the year-to-date period.

DigitalOcean is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter. DOCN has gained 25.5% in the year-to-date period.

Paycor HCM is scheduled to report third-quarter fiscal 2023 results on May 10. The Zacks Consensus Estimate for PYCR’s earnings is pegged at 15 cents per share, suggesting an increase of 36.4% from the prior-year quarter’s reported figure. PYCR has gained 26% in the year-to-date period.

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MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report

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