MACOM (MTSI) Q3 Earnings Match Estimates, Revenues Fall Y/Y
MACOM Technology Solutions Holdings, Inc. MTSI delivered third-quarter fiscal 2023 non-GAAP earnings of 54 cents per share, which matched the Zacks Consensus Estimate. However, the bottom line declined by 26% from the year-ago quarter’s reported figure.
Revenues of $148.5 million surpassed the Zacks Consensus Estimate of $147 million. The top line dropped 13.8% from the year-ago quarter’s figure.
This was due to weakening momentum across Telecommunications and Data Center markets.
MACOM has returned 18.4% on a year-to-date basis, underperforming the industry’s growth of 28.1%.
Top Line in Detail
Telecom Market: MTSI generated revenues of $38.3 million (25.8% of the total revenues) from the market, down 38.2% year over year. The figure missed the Zacks Consensus Estimate of $43.3 million.
Data Center Market: The market generated revenues of $26.6 million (17.9% of the total revenues), down 23.4% from the year-ago quarter. The figure topped the Zacks Consensus Estimate of $23.7 million.
Industrial & Defense Market: MACOM generated revenues of $83.5 million (56.3% of the total revenues) from the market, up 10.6% year over year. The figure came ahead of the Zacks Consensus Estimate of $80 million.
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 third-quarter fiscal 2023, the non-GAAP gross margin was 60.1%, which contracted 210 basis points (bps) from the year-ago fiscal quarter’s reported figure.
In the reported quarter, non-GAAP operating expenses were $52.2 million, which decreased 1.7% from the year-ago fiscal quarter’s reported figure. As a percentage of revenues, the figure expanded by 440 bps to 35.2%.
Consequently, MTSI’s non-GAAP operating margin was 24.9%, which decreased 650 bps from the prior-year quarter’s figure.
Balance Sheet
As of Jun 30, 2023, cash equivalents and short-term investments were $587.6 million, up from $577.3 million as of Mar 31, 2023.
Inventories were $139.01 million, up from $131.9 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $446.8 million in the reported quarter compared with $566.7 million in the previous quarter.
Guidance
For fourth-quarter fiscal 2023, MACOM expects revenues between $148 million and $152 million. The Zacks Consensus Estimate for the same is pegged at $148.89 million.
MTSI’s adjusted earnings per share are anticipated to be within 53-57 cents. The Zacks Consensus Estimate for the same is pegged at 53 cents.
The non-GAAP gross margin is expected to be 59-61%.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #4 (Sell).
Investors interested in the broader technology sector can consider some top-ranked stocks like CACI International CACI and BILL Holdings, Inc. BILL, each carrying a Zacks Rank #2 (Buy) and Super Micro Computer SMCI, carrying a Zacks Rank #1 (Strong Buy) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
CACI is set to report fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, implying growth of 6.83% from the year-ago quarter’s reported figure.
BILL Holdings is set to deliver its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pinned at 41 cents per share.
Super Micro Computer is scheduled to release its fiscal fourth-quarter 2023 results on Aug 8. The Zacks Consensus Estimate for SMCI’s earnings is pegged at $2.94 per share, suggesting an increase of 12.21% from the year-ago quarter’s reported figure.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CACI International, Inc. (CACI) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report
BILL Holdings, Inc. (BILL) : Free Stock Analysis Report
