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M/A-Com (MTSI) Reliance on International Sales: What Investors Need to Know

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Did you analyze how M/A-Com (MTSI - Free Report) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this chipmaker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

While analyzing MTSI's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $252.08 million, marking an increase of 32.3% from the year-ago quarter. We will next turn our attention to dissecting MTSI's international revenue to get a clearer picture of how significant its operations are outside its main base.

Exploring MTSI's International Revenue Patterns

Other Countries accounted for 18.4% of the company's total revenue during the quarter, translating to $46.28 million. Revenues from this region represented a surprise of +7.8%, with Wall Street analysts collectively expecting $42.93 million. When compared to the preceding quarter and the same quarter in the previous year, Other Countries contributed $37.66 million (16%) and $31.27 million (16.4%) to the total revenue, respectively.

China generated $70.97 million in revenues for the company in the last quarter, constituting 28.2% of the total. This represented a surprise of +8.68% compared to the $65.3 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $63.85 million (27.1%), and in the year-ago quarter, it contributed $46.42 million (24.4%) to the total revenue.

Of the total revenue, $29.54 million came from Asia Pacific (excluding China) during the last fiscal quarter, accounting for 11.7%. This represented a surprise of +3.78% as analysts had expected the region to contribute $28.46 million to the total revenue. In comparison, the region contributed $26.4 million, or 11.2%, and $26.12 million, or 13.7%, to total revenue in the previous and year-ago quarters, respectively.

International Market Revenue Projections

Wall Street analysts expect M/A-Com to report a total revenue of $258.33 million in the current fiscal quarter, which suggests an increase of 28.7% from the prior-year quarter. Revenue shares from Other Countries, China and Asia Pacific (excluding China) are predicted to be 16.7%, 25.6%, and 10.4%, corresponding to amounts of $43.18 million, $66.06 million, and $26.87 million, respectively.

Analysts expect the company to report a total annual revenue of $961.17 million for the full year, marking an increase of 31.7% compared to last year. The expected revenue contributions from Other Countries, China and Asia Pacific (excluding China) are projected to be 16.8% ($161.35 million), 26.8% ($257.93 million) and 10.6% ($102.26 million) of the total revenue, in that order.

Closing Remarks

The dependency of M/A-Com on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

M/A-Com, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of M/A-Com's Recent Stock Market Performance

The stock has declined by 11.2% over the past month compared to the 2.7% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes M/A-Com,has increased 6.3% during this time frame. Over the past three months, the company's shares have experienced a loss of 2% relative to the S&P 500's 13.2% increase. Throughout this period, the sector overall has witnessed a 24.3% increase.


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