MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) 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%.
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 - Free Report) , Adobe (ADBE - Free Report) and Arista Networks (ANET - Free Report) . 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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MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) 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%.
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 - Free Report) , Adobe (ADBE - Free Report) and Arista Networks (ANET - Free Report) . 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%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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