Overview

* MACOM fiscal Q3 revenue grows 32.3% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q3 meets analyst estimates, reflecting stable performance

* The supplier of semiconductor technologies for optical, wireless and satellite networks expects Q4 revenue of $256 mln-$264 mln

Outlook

* MACOM expects Q4 revenue between $256 mln and $264 mln

* Company anticipates Q4 adjusted EPS between $0.91 and $0.95

* MACOM sees Q4 adjusted gross margin between 56% and 58%

Result Drivers

* PRODUCT PORTFOLIO - CEO attributes revenue growth to competitive product portfolio and market momentum

* GROSS MARGIN - Slight improvement in gross margin to 55.3% compared to previous year

* OPERATIONAL EFFICIENCY - Increase in adjusted income from operations reflects improved operational efficiency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $252.08 $249.80

Revenue mln mln (14

Analysts

)

Q3 Meet $0.9 $0.9 (14

Adjusted Analysts

EPS )

Q3 Net $36.53

Income mln

Q3 Gross $139.44

Profit mln

Q3 $37.66

Income mln

From

Operatio

ns

Q3 $44.08

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "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 ( MTSI ) is $150.00, about 7.3% above its August 6 closing price of $139.03

* The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)