MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) delivered second-quarter fiscal 2024 non-GAAP earnings of 59 cents per share, which beat the Zacks Consensus Estimate by 1.72%. However, the bottom line declined 25.3% from the year-ago quarter’s reported figure.
Revenues of $181.23 million surpassed the Zacks Consensus Estimate by 0.15%. The top line increased 7% from the year-ago quarter’s figure, owing to strength across the data center and industrial & defense markets.
MACOM remains optimistic about its product portfolio strength and growth prospects across industrial & defense, data center and telecom markets.
MACOM has returned 6.5% in the year-to-date period, outperforming the industry’s decline of 0.4%.
However, the company witnessed softness in the telecom market during the reported quarter.
Top Line in Detail
Telecom Market: MTSI generated revenues of $47.2 million (26% of the total revenues) from the market, down 12.4% year over year. The figure beat the Zacks Consensus Estimate of $45.51 million.
Data Center Market: The market generated revenues of $43.15 million (23.8% of the total revenues), up 12.6% from the year-ago quarter. The figure topped the Zacks Consensus Estimate of $42.93 million.
Industrial & Defense Market: MACOM generated revenues of $90.89 million (50.2% of the total revenues) from the market, up 17.7% year over year. The figure missed the Zacks Consensus Estimate of $92 million.
Operating Details
In the second quarter of fiscal 2024, MTSI’s non-GAAP gross margin was 57.1%, which contracted 500 basis points (bps) from the year-ago fiscal quarter’s reported figure.
In the reported quarter, non-GAAP operating expenses were $63.3 million, which increased 30.2% from the year-ago fiscal quarter’s reported figure. As a percentage of revenues, the figure expanded 620 bps to 34.9%.
Consequently, MTSI’s non-GAAP operating margin was 22.2%, which contracted 1120 bps from the prior-year quarter’s figure.
Balance Sheet & Cash Flow
As of Mar 29, 2024, cash equivalents and short-term investments were $476.4 million, up from $463.3 million as of Dec 29, 2023.
Inventories were $177.8 million, up from $159.5 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $447.71 million in the reported quarter compared with $447.42 million in the previous quarter.
The company generated $51.3 million of cash from operations during the fiscal second quarter.
Guidance
For third-quarter fiscal 2024, MACOM expects revenues between $187 million and $193 million. The Zacks Consensus Estimate for the same is pegged at $184.97 million.
The non-GAAP gross margin is expected to be 56-58%.
MTSI’s adjusted earnings per share are anticipated to be within 63-69 cents. The Zacks Consensus Estimate for the same is pegged at 65 cents.
The company also expects a non-GAAP income tax rate of 3% and 74.0 million fully diluted shares outstanding.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Applied Material (AMAT - Free Report) and Dell Technologies (DELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks’ shares have increased 11.6% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Applied Material’s shares have gained 22.4% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Dell Technologies’ shares have surged 62.1% year to date. DELL is set to report its first-quarter fiscal 2025 results on May 30.
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MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) delivered second-quarter fiscal 2024 non-GAAP earnings of 59 cents per share, which beat the Zacks Consensus Estimate by 1.72%. However, the bottom line declined 25.3% from the year-ago quarter’s reported figure.
Revenues of $181.23 million surpassed the Zacks Consensus Estimate by 0.15%. The top line increased 7% from the year-ago quarter’s figure, owing to strength across the data center and industrial & defense markets.
MACOM remains optimistic about its product portfolio strength and growth prospects across industrial & defense, data center and telecom markets.
MACOM has returned 6.5% in the year-to-date period, outperforming the industry’s decline of 0.4%.
However, the company witnessed softness in the telecom market during the reported quarter.
Top Line in Detail
Telecom Market: MTSI generated revenues of $47.2 million (26% of the total revenues) from the market, down 12.4% year over year. The figure beat the Zacks Consensus Estimate of $45.51 million.
Data Center Market: The market generated revenues of $43.15 million (23.8% of the total revenues), up 12.6% from the year-ago quarter. The figure topped the Zacks Consensus Estimate of $42.93 million.
Industrial & Defense Market: MACOM generated revenues of $90.89 million (50.2% of the total revenues) from the market, up 17.7% year over year. The figure missed the Zacks Consensus Estimate of $92 million.
Operating Details
In the second quarter of fiscal 2024, MTSI’s non-GAAP gross margin was 57.1%, which contracted 500 basis points (bps) from the year-ago fiscal quarter’s reported figure.
In the reported quarter, non-GAAP operating expenses were $63.3 million, which increased 30.2% from the year-ago fiscal quarter’s reported figure. As a percentage of revenues, the figure expanded 620 bps to 34.9%.
Consequently, MTSI’s non-GAAP operating margin was 22.2%, which contracted 1120 bps from the prior-year quarter’s figure.
Balance Sheet & Cash Flow
As of Mar 29, 2024, cash equivalents and short-term investments were $476.4 million, up from $463.3 million as of Dec 29, 2023.
Inventories were $177.8 million, up from $159.5 million in the previously reported quarter.
Long-term debt obligations, excluding the current portion, were $447.71 million in the reported quarter compared with $447.42 million in the previous quarter.
The company generated $51.3 million of cash from operations during the fiscal second quarter.
Guidance
For third-quarter fiscal 2024, MACOM expects revenues between $187 million and $193 million. The Zacks Consensus Estimate for the same is pegged at $184.97 million.
The non-GAAP gross margin is expected to be 56-58%.
MTSI’s adjusted earnings per share are anticipated to be within 63-69 cents. The Zacks Consensus Estimate for the same is pegged at 65 cents.
The company also expects a non-GAAP income tax rate of 3% and 74.0 million fully diluted shares outstanding.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Applied Material (AMAT - Free Report) and Dell Technologies (DELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks’ shares have increased 11.6% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Applied Material’s shares have gained 22.4% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Dell Technologies’ shares have surged 62.1% year to date. DELL is set to report its first-quarter fiscal 2025 results on May 30.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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