MACOM (MTSI) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
MACOM Technology Solutions Holdings, Inc. MTSI delivered fourth-quarter fiscal 2023 non-GAAP earnings of 56 cents per share, which beat the Zacks Consensus Estimate by 1.8%. However, the bottom line declined 27.3% from the year-ago quarter’s reported figure.
Revenues of $150.4 million missed the Zacks Consensus Estimate of $150.7 million. The top line dropped 15.6% from the year-ago quarter’s figure.
MACOM has returned 15% on a year-to-date basis, outperforming the industry’s growth of 5.9%.
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 $30.6 million (20.3% of the total revenues) from the market.
Data Center Market: The market generated revenues of $40.5 million (26.9% of the total revenues).
Industrial & Defense Market: MACOM generated revenues of $79.2 million (52.7% of the total revenues) from the market.
Operating Details
In fourth-quarter fiscal 2023, the non-GAAP gross margin was 60.1%, which contracted 250 basis points (bps) from the year-ago fiscal quarter’s reported figure.
In the reported quarter, non-GAAP operating expenses were $53.14 million, which decreased 2.5% from the year-ago fiscal quarter’s reported figure. As a percentage of revenues, the figure expanded 470 bps to 35.3%.
Consequently, MTSI’s non-GAAP operating margin was 24.7%, which contracted 730 bps from the prior-year quarter’s figure.
Balance Sheet
As of Sep 30, 2023, cash equivalents and short-term investments were $514.5 million, down from $587.6 million as of Jun 30, 2023.
Inventories were $136.3 million, down from $139.01 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $447.13 million in the reported quarter compared with $446.8 million in the previous quarter.
Guidance
For first-quarter fiscal 2024, MACOM expects revenues between $149 million and $153 million. The Zacks Consensus Estimate for the same is pegged at $154.32 million.
MTSI’s adjusted earnings per share are anticipated to be within 55-59 cents. The Zacks Consensus Estimate for the same is pegged at 58 cents.
The non-GAAP gross margin is expected to be 59-61%.
Zacks Rank & Stocks to Consider
MACOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Asure Software ASUR, Adobe ADBE and Arista Networks ANET. Asure Software sports a Zacks Rank #1 (Strong Buy), while Adobe and Arista Networks carry a Zacks Rank #2 (Buy) each.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have lost 10% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 27%.
Adobe shares have gained 72.4% in the year-to-date period. The long-term earnings growth rate for ADBE is currently projected at 13.54%.
Arista Networks shares have increased 69.1% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 20.40%.
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