MACOM Q1 revenue rises 24.5%, slightly beats estimates

Overview

• Semiconductor supplier's fiscal Q1 revenue rose 24.5% yr/yr, slightly beating analyst expectations

• Adjusted net income for fiscal Q1 improved significantly from the previous year

• Company expects fiscal Q2 revenue between $281 mln and $289 mln

Outlook

• MACOM expects Q2 revenue between $281 mln and $289 mln

• Adjusted gross margin expected between 57.0% and 59.0%

• Adjusted EPS for Q2 expected between $1.05 and $1.09

Result Drivers

• REVENUE GROWTH - Revenue increased 24.5% yr/yr to $271.6 mln, driven by strategic execution and differentiated solutions

• MARGIN IMPROVEMENT - Gross margin improved to 55.9% from 53.7% yr/yr, indicating operational efficiencies

• STRATEGIC FOCUS - CEO Stephen G. Daly emphasized focus on executing strategic plans and providing differentiated solutions

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for MACOM Technology Solutions Holdings Inc is $208.50, about 3% below its February 4 closing price of $215.03

• The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 36 three months ago

Press Release: ID:nGNXYjDwM

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