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What's in the Store for MACOM Technology (MTSI) Q1 Earnings?

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MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) is scheduled to report first-quarter fiscal 2021 results on Jan 28.

For the fiscal first quarter, the company expects revenues between $146 million and $150 million. The Zacks Consensus Estimate for the same is pegged at $147.9 million, indicating growth of 24.2% from the prior-year quarter’s reported figure.

Further, the company expects adjusted earnings per share within the range of 41-45 cents. The consensus mark for the same stands at 42 cents per share, implying an increase from the year-ago quarter’s reported figure of 7 cents.

Notably, the company’s bottom line surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 66.43%.

Factors to Consider

MACOM’s robust portfolio of semiconductor products is likely to have driven its performance consistently in the end-markets during the fiscal first quarter.

Moreover, secular trends prevailing in the data center, telecommunications, and industrial and defense end-markets are expected to have steadily contributed to the company’s topline in the quarter under review.

Precisely, solid cloud services demand is expected to have bolstered both domestic and international deployments of the company during the to-be-reported quarter. This, in turn, is anticipated to have boosted MACOM’s momentum in the data center market.

Further, the company’s strength across its high-performance analog product lines and optical design might have remained a key catalyst. Moreover, high-performance analog components, such as TIAs, CDRs and drivers, which are required in 100G deployment, are expected to have aided revenue growth in the data center market during the December quarter.

Additionally, robust prospects in 5G technology are expected to have perked up the company’s momentum in the telecom market in the soon-to-be-reported quarter.

Also, rising demand for the company’s RF and microwave products and strength across defense applications are expected to have continued fueling its top-line growth in the fiscal first quarter.

However, the company’s highly leveraged balance sheet is likely to reflect on the to-be-reported results.

Further, uncertainties related to the ongoing coronavirus pandemic might have persisted as headwinds to the stock.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for MACOM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MACOM has an Earnings ESP of 0.00% and a Zacks Rank #3, currently.

Stocks to Consider

Here are some companies, which per our model, have the right combination of elements to beat on earnings in their impending quarterly releases.

Alphabet Inc. (GOOGL - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +4.82% and a Zacks Rank of 2, currently.

PayPal Holdings, Inc. (PYPL - Free Report) has an Earnings ESP of +3.00% and a Zacks Rank of 2, currently.

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