We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
MTSI posted Q3 earnings of $0.90 per share and $252M in revenues, both beating consensus estimates.
Revenues grew year over year in telecom, data center, and defense, with data center up 54.7%.
MTSI projects Q4 revenues of $256M-$264M and EPS of $0.91-$0.95, both near consensus expectations.
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported third-quarter fiscal 2025 earnings of 90 cents per share, which beat the Zacks Consensus Estimate by a penny. The company reported earnings of 66 cents per share a year ago.
MACOM Technology’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 0.9%.
MTSI posted revenues of $252 million in the third quarter of fiscal 2025, surpassing the Zacks Consensus Estimate by 0.81%. The company reported revenues of $190.5 million in the year-ago quarter.
Despite posting better-than-expected results, MTSI shares lost 8.11% in Thursday’s trading session.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
Telecom Market: MTSI generated revenues of $68.1 million (27% of total revenues) from the telecom market, up 34.6% year over year. Growth in this segment is driven by continued high demand for MACOM’s products supporting U.S. 5G infrastructure expansion and growing momentum in 100G/lane platforms, 800G SR8, 400G SR4, and early adoption of 1.6T platforms.
Data Center Market: The data center market contributed $75.8 million (30.1% of total revenues), reflecting a robust year-over-year growth of 54.7%. The strong performance was fueled by increasing demand from Internet service providers for MACOM's 800G, 1.6T, Linear Pluggable Optics, and Active Copper Cables solutions.
Industrial & Defense Market: This market accounted for the largest share, delivering $108.2 million (42.9% of total revenues), up 19% year over year. MACOM continues to see heightened demand for solutions related to electronic warfare, secure communications, and integrated battlefield systems. The company is also benefiting from growing European defense demand and the expansion of its MESC facility in France.
Operating Details
In the third quarter of fiscal 2025, MACOM’s non-GAAP gross margin was 57.6%, expanding 10 basis points from 57.5% in the year-ago quarter.
Non-GAAP operating expenses were $81.7 million, up 27.9% year over year. As a percentage of revenues, operating expenses improved to 32.4%, contracting 110 basis points from the prior-year quarter.
As a result, MACOM’s non-GAAP operating margin was 25.2%, expanding 120 basis points from the prior-year quarter’s 24%.
Balance Sheet
As of July 4, 2025, cash equivalents and short-term investments were $735.2 million, up from $681.5 million in the previous quarter.
Inventories were $215.4 million, up from $194.5 million reported in the year-ago quarter.
Long-term debt was $339.4 million in the reported quarter compared with $339.1 million in the previous quarter.
Guidance
For the fiscal fourth quarter, MACOM Technology expects revenues between $256 million and $264 million. The Zacks Consensus Estimate for the same is pegged at $257.5 million. MACOM expects adjusted gross margin in the range of 56-58%.
The company anticipates adjusted earnings per diluted share to be in the range of 91 to 95 cents. The Zacks Consensus Estimate for the same is pegged at 92 cents.
Additionally, MACOM expects a non-GAAP income tax rate of 3% and 76.5 million fully diluted shares outstanding.
Zacks Rank & Stocks to Consider
MTSI currently has a Zacks Rank #3 (Hold).
Alkami Technology (ALKT - Free Report) , Arista Networks (ANET - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy) each, APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkami Technology shares have lost 34.5% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 15 cents per share, up by 2 cents over the past 30 days, implying growth of 51.7% from the year-ago quarter’s reported figure.
Arista Networks shares have lost 11.9% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at 65 cents per share, up by a penny in the past 30 days, indicating year-over-year growth of 13.66%.
Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MACOM Technology Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported third-quarter fiscal 2025 earnings of 90 cents per share, which beat the Zacks Consensus Estimate by a penny. The company reported earnings of 66 cents per share a year ago.
MACOM Technology’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 0.9%.
MTSI posted revenues of $252 million in the third quarter of fiscal 2025, surpassing the Zacks Consensus Estimate by 0.81%. The company reported revenues of $190.5 million in the year-ago quarter.
Despite posting better-than-expected results, MTSI shares lost 8.11% in Thursday’s trading session.
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
MTSI Top Line in Detail
Telecom Market: MTSI generated revenues of $68.1 million (27% of total revenues) from the telecom market, up 34.6% year over year. Growth in this segment is driven by continued high demand for MACOM’s products supporting U.S. 5G infrastructure expansion and growing momentum in 100G/lane platforms, 800G SR8, 400G SR4, and early adoption of 1.6T platforms.
Data Center Market: The data center market contributed $75.8 million (30.1% of total revenues), reflecting a robust year-over-year growth of 54.7%. The strong performance was fueled by increasing demand from Internet service providers for MACOM's 800G, 1.6T, Linear Pluggable Optics, and Active Copper Cables solutions.
Industrial & Defense Market: This market accounted for the largest share, delivering $108.2 million (42.9% of total revenues), up 19% year over year. MACOM continues to see heightened demand for solutions related to electronic warfare, secure communications, and integrated battlefield systems. The company is also benefiting from growing European defense demand and the expansion of its MESC facility in France.
Operating Details
In the third quarter of fiscal 2025, MACOM’s non-GAAP gross margin was 57.6%, expanding 10 basis points from 57.5% in the year-ago quarter.
Non-GAAP operating expenses were $81.7 million, up 27.9% year over year. As a percentage of revenues, operating expenses improved to 32.4%, contracting 110 basis points from the prior-year quarter.
As a result, MACOM’s non-GAAP operating margin was 25.2%, expanding 120 basis points from the prior-year quarter’s 24%.
Balance Sheet
As of July 4, 2025, cash equivalents and short-term investments were $735.2 million, up from $681.5 million in the previous quarter.
Inventories were $215.4 million, up from $194.5 million reported in the year-ago quarter.
Long-term debt was $339.4 million in the reported quarter compared with $339.1 million in the previous quarter.
Guidance
For the fiscal fourth quarter, MACOM Technology expects revenues between $256 million and $264 million. The Zacks Consensus Estimate for the same is pegged at $257.5 million. MACOM expects adjusted gross margin in the range of 56-58%.
The company anticipates adjusted earnings per diluted share to be in the range of 91 to 95 cents. The Zacks Consensus Estimate for the same is pegged at 92 cents.
Additionally, MACOM expects a non-GAAP income tax rate of 3% and 76.5 million fully diluted shares outstanding.
Zacks Rank & Stocks to Consider
MTSI currently has a Zacks Rank #3 (Hold).
Alkami Technology (ALKT - Free Report) , Arista Networks (ANET - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy) each, APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkami Technology shares have lost 34.5% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 15 cents per share, up by 2 cents over the past 30 days, implying growth of 51.7% from the year-ago quarter’s reported figure.
Arista Networks shares have lost 11.9% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at 65 cents per share, up by a penny in the past 30 days, indicating year-over-year growth of 13.66%.
Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.