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MACOM (MTSI) Reports In-Line Q4 Earnings, Lags on Revenues
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MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) delivered fiscal fourth-quarter 2018 non-GAAP earnings of 16 cents per share, in line with the Zacks Consensus Estimate. The figure increased 23.1% on a sequential basis but declined drastically from the year-ago quarter.
The sequential increase in earnings was driven by prudent cost management.
Adjusted revenues decreased 9.1% year over year but increased 9.7% on a sequential basis to $151.2 million, missing the Zacks Consensus Estimate of $153 million. However, the figure came within the guided range.
Notably, shares of MACOM have lost 53.5% on a year-to-date basis compared with the industry’s decline of 16.7%.
Operating Details
In fiscal fourth-quarter 2018, non-GAAP gross margin came in at 54.8%, contracting 330 basis points (bps) on a year-over-year basis and 120 bps sequentially.
Non-GAAP operating expenses, as a percentage of revenues, came in at 42.4%, which expanded 710 bps from the prior-year quarter but contracted 220 bps from the fiscal third quarter.
Adjusted operating margin came in at 12.3%, which expanded 1050 bps from the prior-year quarter and 90 bps from the fiscal third quarter.
Adjusted EBITDA was $26.1 million, down from $47.3 million in the year-ago quarter. However, the figure was up from $24.1 million in the fiscal third quarter.
Balance Sheet & Cash Flow
At the end of fiscal fourth quarter, cash equivalents and short-term investments were $192.9 million compared with $182.9 million in the fiscal third quarter. Inventories were $122.8 million, down from $122.9 million a year ago.
Long-term debt obligations, excluding current portion, were $658.4 million in the fiscal fourth quarter.
Guidance
For fiscal first-quarter 2019, MACOM expects adjusted revenues between $150 million and $156 million. The Zacks Consensus Estimate for revenues is pegged at $155.7 million.
The company’s earnings are anticipated in the range of 18-22 cents per share. The Zacks Consensus Estimate for the same is pegged at 20 cents per share.
Further, non-GAAP gross margin is anticipated in the range of 55-57%.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
Long-term earnings growth rate for boohoo group, QuinStreet and AMETEK is currently pegged at 25%, 25% and 10.97%, respectively.
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The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
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MACOM (MTSI) Reports In-Line Q4 Earnings, Lags on Revenues
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) delivered fiscal fourth-quarter 2018 non-GAAP earnings of 16 cents per share, in line with the Zacks Consensus Estimate. The figure increased 23.1% on a sequential basis but declined drastically from the year-ago quarter.
The sequential increase in earnings was driven by prudent cost management.
Adjusted revenues decreased 9.1% year over year but increased 9.7% on a sequential basis to $151.2 million, missing the Zacks Consensus Estimate of $153 million. However, the figure came within the guided range.
Notably, shares of MACOM have lost 53.5% on a year-to-date basis compared with the industry’s decline of 16.7%.
Operating Details
In fiscal fourth-quarter 2018, non-GAAP gross margin came in at 54.8%, contracting 330 basis points (bps) on a year-over-year basis and 120 bps sequentially.
Non-GAAP operating expenses, as a percentage of revenues, came in at 42.4%, which expanded 710 bps from the prior-year quarter but contracted 220 bps from the fiscal third quarter.
Adjusted operating margin came in at 12.3%, which expanded 1050 bps from the prior-year quarter and 90 bps from the fiscal third quarter.
Adjusted EBITDA was $26.1 million, down from $47.3 million in the year-ago quarter. However, the figure was up from $24.1 million in the fiscal third quarter.
Balance Sheet & Cash Flow
At the end of fiscal fourth quarter, cash equivalents and short-term investments were $192.9 million compared with $182.9 million in the fiscal third quarter. Inventories were $122.8 million, down from $122.9 million a year ago.
Long-term debt obligations, excluding current portion, were $658.4 million in the fiscal fourth quarter.
Guidance
For fiscal first-quarter 2019, MACOM expects adjusted revenues between $150 million and $156 million. The Zacks Consensus Estimate for revenues is pegged at $155.7 million.
The company’s earnings are anticipated in the range of 18-22 cents per share. The Zacks Consensus Estimate for the same is pegged at 20 cents per share.
Further, non-GAAP gross margin is anticipated in the range of 55-57%.
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. Quote
Zacks Rank & Key Picks
Currently, MACOM carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are boohoo group plc (BHOOY - Free Report) , QuinStreet, Inc. (QNST - Free Report) and AMETEK, Inc. (AME - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for boohoo group, QuinStreet and AMETEK is currently pegged at 25%, 25% and 10.97%, respectively.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>