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MACOM (MTSI) Q1 Earnings & Revenues Top Estimates, Rise Y/Y
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MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of 81 cents per share, beating the Zacks Consensus Estimate by 2.5%. Further, the bottom line improved 26.6% from the year-ago quarter’s reported figure.
Revenues of $180.1 million surpassed the Zacks Consensus Estimate of $179.5 million. Moreover, the top line rose 12.8% from the year-ago quarter.
Top-line growth was driven by the company’s strong performance across all end-markets on a year-over-year basis.
Notably, MACOM has gained 13.3% over a year, outperforming the industry’s rally of 10.7%.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
Telecom Market: MTSI generated revenues of $61.45 million (34% of the total revenues) from the market, up 10.1% year over year.
Data Center Market: The market generated revenues of $41.48 million (23% of the total revenues), up 35.3% from the year-ago quarter.
Industrial & Defense Market: MACOM generated revenues of $77.17 million (43% of the total revenues) from the market, up 5.5% year over year.
Operating Details
In first-quarter fiscal 2023, the non-GAAP gross margin was 62.6%, which expanded 120 basis points (bps) from the year-ago quarter’s reported figure.
In the reported quarter, non-GAAP operating expenses were $53.9 million, which increased 10% from the year-ago quarter’s reported figure. As a percentage of revenues, the figure contracted 80 bps to 29.9%.
Consequently, MTSI’s non-GAAP operating margin was 32.7%, which expanded 200 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 30, 2022, cash equivalents and short-term investments were $594.7 million, up from $586.5 million as of Sept 30, 2022.
Inventories were $121.3 million, up from $114.9 million in the last reported quarter.
Long-term debt obligations, excluding the current portion, were $566.3 million in the reported quarter compared with $565.9 million in the previous quarter.
Cash generated from operations was $38.3 million, down from $59.9 million in the last reported quarter.
Guidance
For second-quarter fiscal 2023, MACOM expects revenues between $166 million and $170 million. The Zacks Consensus Estimate for the same is pegged at $177.7 million.
MTSI’s adjusted earnings per share are anticipated to be 76-80 cents. The Zacks Consensus Estimate for the same is pegged at 74 cents.
The non-GAAP gross margin is anticipated to be 61.5-63.5%.
Agilent Technologies is set to report first-quarter fiscal 2023 results on Feb 28. The Zacks Consensus Estimate for Agilent’s earnings is pegged at $1.31 per share, suggesting an increase of 8.3% from the prior-year period’s reported figure. Agilent has gained 10.2% in the past year.
Arista Networks is scheduled to release fourth-quarter 2022 results on Feb 13. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.21 per share, suggesting an increase of 47.6% from the prior-year quarter’s reported figure. ANET has gained 9.1% in the past year.
Endava is scheduled to release second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.9% from the prior-year quarter’s reported figure. DAVA has lost 26.1% in the past year.
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MACOM (MTSI) Q1 Earnings & Revenues Top Estimates, Rise Y/Y
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of 81 cents per share, beating the Zacks Consensus Estimate by 2.5%. Further, the bottom line improved 26.6% from the year-ago quarter’s reported figure.
Revenues of $180.1 million surpassed the Zacks Consensus Estimate of $179.5 million. Moreover, the top line rose 12.8% from the year-ago quarter.
Top-line growth was driven by the company’s strong performance across all end-markets on a year-over-year basis.
Notably, MACOM has gained 13.3% over a year, outperforming the industry’s rally of 10.7%.
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: MTSI generated revenues of $61.45 million (34% of the total revenues) from the market, up 10.1% year over year.
Data Center Market: The market generated revenues of $41.48 million (23% of the total revenues), up 35.3% from the year-ago quarter.
Industrial & Defense Market: MACOM generated revenues of $77.17 million (43% of the total revenues) from the market, up 5.5% year over year.
Operating Details
In first-quarter fiscal 2023, the non-GAAP gross margin was 62.6%, which expanded 120 basis points (bps) from the year-ago quarter’s reported figure.
In the reported quarter, non-GAAP operating expenses were $53.9 million, which increased 10% from the year-ago quarter’s reported figure. As a percentage of revenues, the figure contracted 80 bps to 29.9%.
Consequently, MTSI’s non-GAAP operating margin was 32.7%, which expanded 200 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 30, 2022, cash equivalents and short-term investments were $594.7 million, up from $586.5 million as of Sept 30, 2022.
Inventories were $121.3 million, up from $114.9 million in the last reported quarter.
Long-term debt obligations, excluding the current portion, were $566.3 million in the reported quarter compared with $565.9 million in the previous quarter.
Cash generated from operations was $38.3 million, down from $59.9 million in the last reported quarter.
Guidance
For second-quarter fiscal 2023, MACOM expects revenues between $166 million and $170 million. The Zacks Consensus Estimate for the same is pegged at $177.7 million.
MTSI’s adjusted earnings per share are anticipated to be 76-80 cents. The Zacks Consensus Estimate for the same is pegged at 74 cents.
The non-GAAP gross margin is anticipated to be 61.5-63.5%.
Zacks Rank & Stocks to Consider
Currently, MACOM has a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Agilent Technologies (A - Free Report) , Arista Networks (ANET - Free Report) and Endava (DAVA - 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.
Agilent Technologies is set to report first-quarter fiscal 2023 results on Feb 28. The Zacks Consensus Estimate for Agilent’s earnings is pegged at $1.31 per share, suggesting an increase of 8.3% from the prior-year period’s reported figure. Agilent has gained 10.2% in the past year.
Arista Networks is scheduled to release fourth-quarter 2022 results on Feb 13. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.21 per share, suggesting an increase of 47.6% from the prior-year quarter’s reported figure. ANET has gained 9.1% in the past year.
Endava is scheduled to release second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.9% from the prior-year quarter’s reported figure. DAVA has lost 26.1% in the past year.