We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MACOM (MTSI) Q2 Earnings & Revenues Top Estimates, Rise Y/Y
Read MoreHide Full Article
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of 68 cents per share, beating the Zacks Consensus Estimate by 3.03%. Further, the bottom line improved 33.3% year over year and 6.2% from the previous quarter.
Revenues of $165.1 million surpassed the Zacks Consensus Estimate of $163 million. Moreover, the top line rose 9.7% from the year-ago quarter and 3.5% sequentially.
Solid momentum across the telecom market drove top-line growth in the reported quarter.
MACOM’s growing investments are expected to aid it in developing advanced technologies and products, which, in turn, will continue to drive its top-line growth in the days ahead.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
Telecom Market: The company generated revenues of $62.9 million (38.1% of total revenues) from the market, up 48.9% from the previous quarter.
Data Center Market: The market generated revenues of $35.1 million (21.2% of total revenues), down 3.1% from the prior quarter.
Industrial & Defense Market: MACOM generated revenues of $67.1 million (40.7% of total revenues) from the market, which declined 6.9% sequentially.
Operating Details
In second-quarter fiscal 2022, the non-GAAP gross margin was 61.7%, which expanded 250 basis points (bps) year over year.
In the reported quarter, non-GAAP operating expenses were $51.02 million, which increased 7.8% year over year. As a percentage of revenues, the figure contracted 50 bps to 30.9%.
Consequently, the company’s non-GAAP operating margin was 30.8%, which expanded 300 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Apr 1, 2022, cash equivalents and short-term investments were $503.02 million, up from $477.7 million as of Dec 31, 2021. Inventories were $93.4 million, up from $88.5 million in the last reported quarter.
Long-term debt obligations, excluding the current portion, were $565.1 million in the reported quarter compared with $564.7 million in the previous quarter.
Cash generated from operations was $42.5 million, up from $34.1 million in the last reported quarter.
The company’s free cash flow in the reported quarter was $35.4 million.
Guidance
For third-quarter fiscal 2022, MACOM expects revenues between $168 million and $172 million. The Zacks Consensus Estimate for the same is pegged at $168.4 million.
The company’s adjusted earnings per share are anticipated to be 68-72 cents. The Zacks Consensus Estimate for the same is pegged at 68 cents.
The non-GAAP gross margin is anticipated to be 61-63%.
Image: Bigstock
MACOM (MTSI) Q2 Earnings & Revenues Top Estimates, Rise Y/Y
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of 68 cents per share, beating the Zacks Consensus Estimate by 3.03%. Further, the bottom line improved 33.3% year over year and 6.2% from the previous quarter.
Revenues of $165.1 million surpassed the Zacks Consensus Estimate of $163 million. Moreover, the top line rose 9.7% from the year-ago quarter and 3.5% sequentially.
Solid momentum across the telecom market drove top-line growth in the reported quarter.
MACOM’s growing investments are expected to aid it in developing advanced technologies and products, which, in turn, will continue to drive its top-line growth in the days ahead.
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: The company generated revenues of $62.9 million (38.1% of total revenues) from the market, up 48.9% from the previous quarter.
Data Center Market: The market generated revenues of $35.1 million (21.2% of total revenues), down 3.1% from the prior quarter.
Industrial & Defense Market: MACOM generated revenues of $67.1 million (40.7% of total revenues) from the market, which declined 6.9% sequentially.
Operating Details
In second-quarter fiscal 2022, the non-GAAP gross margin was 61.7%, which expanded 250 basis points (bps) year over year.
In the reported quarter, non-GAAP operating expenses were $51.02 million, which increased 7.8% year over year. As a percentage of revenues, the figure contracted 50 bps to 30.9%.
Consequently, the company’s non-GAAP operating margin was 30.8%, which expanded 300 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Apr 1, 2022, cash equivalents and short-term investments were $503.02 million, up from $477.7 million as of Dec 31, 2021. Inventories were $93.4 million, up from $88.5 million in the last reported quarter.
Long-term debt obligations, excluding the current portion, were $565.1 million in the reported quarter compared with $564.7 million in the previous quarter.
Cash generated from operations was $42.5 million, up from $34.1 million in the last reported quarter.
The company’s free cash flow in the reported quarter was $35.4 million.
Guidance
For third-quarter fiscal 2022, MACOM expects revenues between $168 million and $172 million. The Zacks Consensus Estimate for the same is pegged at $168.4 million.
The company’s adjusted earnings per share are anticipated to be 68-72 cents. The Zacks Consensus Estimate for the same is pegged at 68 cents.
The non-GAAP gross margin is anticipated to be 61-63%.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider stocks like Jabil (JBL - Free Report) , Jack Henry & Associates (JKHY - Free Report) , and Broadcom (AVGO - Free Report) . While Jabil currently sports a Zacks Rank #1 (Strong Buy), Jack Henry & Associates and Broadcom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jabil has gained 5.5% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.
Jack Henry & Associates has gained 16.9% over a year. The long-term earnings growth rate for JKHY is currently projected at 17%.
Broadcom has gained 20% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.