Latest news with #MTSI
Yahoo
10-06-2025
- Business
- Yahoo
MTSI Q2 Earnings Call: Broad-Based Growth and Product Innovation Drive Revenue Outlook
Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 30.2% year on year to $235.9 million. On top of that, next quarter's revenue guidance ($250 million at the midpoint) was surprisingly good and 5.7% above what analysts were expecting. Its non-GAAP profit of $0.85 per share was in line with analysts' consensus estimates. Is now the time to buy MTSI? Find out in our full research report (it's free). Revenue: $235.9 million vs analyst estimates of $230 million (30.2% year-on-year growth, 2.6% beat) Adjusted EPS: $0.85 vs analyst estimates of $0.84 (in line) Revenue Guidance for Q2 CY2025 is $250 million at the midpoint, above analyst estimates of $236.6 million Adjusted EPS guidance for Q2 CY2025 is $0.89 at the midpoint, above analyst estimates of $0.87 Operating Margin: 14.8%, up from 8.5% in the same quarter last year Inventory Days Outstanding: 181, up from 179 in the previous quarter Market Capitalization: $9.3 billion MACOM's second quarter results were shaped by expansion in its three core end markets: Industrial & Defense, Data Center, and Telecom. Management attributed much of the year-over-year growth to increased demand for higher-frequency and higher-power solutions, particularly in defense radar, satellite communication, and data center upgrades. CEO Stephen Daly highlighted that, 'Our I&D and Data Center quarterly revenues achieved record levels,' and pointed to the company's ability to win new design opportunities as a key factor. The ramp of new products, including 200G photodetectors and high-power optical amplifiers, contributed meaningfully to these outcomes, while telecom saw a rebound as inventory levels normalized and new platform deployments advanced. Looking ahead, MACOM's management expects continued sequential revenue growth across all end markets, with Industrial & Defense projected to lead. Daly noted, 'We anticipate that Industrial & Defense will lead with approximately 10% sequential growth followed by Data Center at 5% sequential growth and telecom slightly up sequentially.' The company's outlook is supported by a record backlog and ongoing customer demand for data center upgrades and next-generation satellite systems. However, leadership remains cautious about forecasting beyond the upcoming quarter, emphasizing market volatility in the data center segment and the importance of ongoing innovation and execution. The upcoming transfer of the Wolfspeed RF fab is also positioned as a potential driver for future margin improvements, though some uncertainty remains around the pace of gross margin recovery. Management attributed strong quarterly growth to market share gains from new products, robust defense and data center demand, and improved order trends in telecom. Product innovation and strategic investments in R&D were highlighted as central to these results. Defense and radar demand: The Industrial & Defense segment benefited from ongoing upgrades in U.S. and international defense systems, including radar, electronic warfare, and communications. MACOM's expertise in high-frequency, high-power semiconductors positioned it well for new program wins and increased market share. Data center technology upgrades: The Data Center business saw sustained expansion, driven by adoption of higher-speed data rates (such as 100G per lane and 800G platforms) and the ratification of linear pluggable optics (LPO) standards. Management noted early customer adoption and highlighted the introduction of 200G photodetectors as key contributors. Telecom rebound aided by SATCOM: Improved telecom results were linked to recovering demand in 5G infrastructure, broadband access, and satellite communications (SATCOM). Management cited new design wins in both ground and space-based satellite systems, and significant progress on a large multi-phase SATCOM contract. Product and process innovation: MACOM launched the Opto-Amp optical amplifier for satellite links and continued developing advanced RF and photonics processes, such as the next-generation GaN on Silicon Carbide. Ongoing investment in proprietary semiconductor technologies and collaborations with research labs were emphasized as core to the company's competitive strategy. Wolfspeed RF fab integration: The transition of the Wolfspeed RF business and associated fabrication facility is ahead of schedule. Management expects this to enhance capacity and support growth, though achieving gross margin targets will depend on further improvements in yields and throughput after the transfer. MACOM's outlook centers on continued demand for defense and data center solutions, ongoing product innovation, and operational execution as the Wolfspeed fab integration progresses. Industrial & Defense momentum: Management anticipates double-digit sequential growth in Industrial & Defense, underpinned by expanding European defense exposure and new radar program wins. The company's recent acquisition of a European wafer fab is enabling deeper customer relationships and technology transfers, broadening its opportunity set in this segment. Data center volatility and opportunity: While expecting near-term growth in data center demand, management flagged volatility as a risk, citing rapid ramps and declines across platforms and customers. The company is focused on maintaining a broad product portfolio and is closely monitoring adoption of new standards like LPO to capture emerging opportunities. Wolfspeed fab transition impact: The ongoing Wolfspeed RF fab integration is expected to support higher capacity and long-term margin improvement. Management noted that achieving targeted gross margins will require further operational improvements post-transfer, with the financial benefits expected to materialize over several quarters. In the coming quarters, the StockStory team will be monitoring (1) the execution of the Wolfspeed RF fab transfer and its impact on gross margins, (2) momentum in Industrial & Defense as new radar and European defense contracts progress, and (3) continued adoption of MACOM's data center solutions amid ongoing market volatility. Progress on new product ramps and visibility into major customer wins will also serve as key signposts for the company's trajectory. MACOM currently trades at a forward P/E ratio of 33.3×. Should you double down or take your chips? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
2 Profitable Stocks with Competitive Advantages and 1 to Steer Clear Of
A company with profits isn't always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up. Trailing 12-Month GAAP Operating Margin: 6.6% Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac. Why Does GM Give Us Pause? Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth Forecasted revenue decline of 5.6% for the upcoming 12 months implies demand will fall off a cliff High input costs result in an inferior gross margin of 12.5% that must be offset through higher volumes At $49.07 per share, General Motors trades at 4.4x forward P/E. Read our free research report to see why you should think twice about including GM in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 11.8% Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. Why Are We Fans of MTSI? Annual revenue growth of 9.9% over the past two years was outstanding, reflecting market share gains this cycle Projected revenue growth of 21.6% for the next 12 months is above its two-year trend, pointing to accelerating demand Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 81.7% annually MACOM's stock price of $123.42 implies a valuation ratio of 32.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Trailing 12-Month GAAP Operating Margin: 22.1% Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services. Why Are We Positive On TH? Healthy operating margin of 32.8% shows it's a well-run company with efficient processes Strong free cash flow margin of 24.5% enables it to reinvest or return capital consistently Returns on capital are growing as management capitalizes on its market opportunities Target Hospitality is trading at $7.49 per share, or 21.9x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
28-05-2025
- Business
- Yahoo
Why M/A-Com (MTSI) is a Top Growth Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time. MACOM Technology Solutions Holdings, Inc. is a provider of power analog semiconductor solutions to varied markets. The company develops and produces analog radio frequency (RF), microwave and millimeter wave semiconductor devices, and components for applications in optical, wireless and satellite networks. MTSI is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 35.2% year-over-year for the current fiscal year, with sales growth of 30.7%. Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.05 to $3.46 per share. MTSI also boasts an average earnings surprise of 0.6%. Looking at cash flow, M/A-Com is expected to report cash flow growth of 3.5% this year; MTSI has generated cash flow growth of 23.9% over the past three to five years. With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, MTSI should be on investors' short lists. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
17-05-2025
- Business
- Yahoo
Should You Hold MACOM Technology Solutions (MTSI)?
Aristotle Capital Boston, LLC, an investment advisor, released its 'Small Cap Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The volatility observed in 2024 continued into the first quarter of 2025. The Russell 2000 Index experienced volatility in Q1 2025, losing -9.48% after a strong 2024. Due to uncertainty, geopolitical tensions, and a longer rate environment, February and March were challenging. In the first quarter, the strategy delivered a return of -7.34% net of fees (-7.20% gross of fees), outperforming the Russell 2000 Index's -9.48% total return. For more information on the fund's best picks in 2025, please check its top five holdings. In its first-quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI). MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) manufactures analog semiconductor solutions for wireless and wireline applications. The one-month return of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) was 25.94%, and its shares gained 21.50% of their value over the last 52 weeks. On May 15, 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) stock closed at $122.53 per share with a market capitalization of $9.115 billion. Aristotle Capital Small Cap Equity Strategy stated the following regarding MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) in its Q1 2025 investor letter: "MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI), a designer and manufacturer of high-performance semiconductor products, declined along with the broader semiconductor industry during the quarter. We maintain our position, as we believe the company's meaningful exposure to growing demand from Data Center and 5G end market applications along with the integration of recent acquisitions should drive additional shareholder value in periods to come." An aerial view of a semiconductor factory, with its intricate machinery and equipment. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) at the end of the fourth quarter which was 23 in the previous quarter. In the second quarter of 2025, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported record revenue of $235.9 million, up 8.1% sequentially. While we acknowledge the potential of MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) and shared Artisan Global Discovery Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
2 Volatile Stocks with Competitive Advantages and 1 to Keep Off Your Radar
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy. These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are two volatile stocks that could reward patient investors and one that might not be worth the risk. Rolling One-Year Beta: 2.99 Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming. Why Is WOOF Not Exciting? Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations Suboptimal cost structure is highlighted by its history of operating losses High net-debt-to-EBITDA ratio of 8× could force the company to raise capital at unfavorable terms if market conditions deteriorate Petco is trading at $3.20 per share, or 52.2x forward P/E. Dive into our free research report to see why there are better opportunities than WOOF. Rolling One-Year Beta: 1.84 Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. Why Are We Fans of MTSI? Market share has increased this cycle as its 9.9% annual revenue growth over the last two years was exceptional Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 21.6% Earnings per share grew by 83.6% annually over the last five years, massively outpacing its peers At $123.69 per share, MACOM trades at 32.7x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Rolling One-Year Beta: 1.22 With low-pressure heating systems as the first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers. Why Is TT a Top Pick? Impressive 11.6% annual revenue growth over the last two years indicates it's winning market share this cycle Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue ROIC punches in at 22.9%, illustrating management's expertise in identifying profitable investments, and its rising returns show it's making even more lucrative bets Trane Technologies's stock price of $417 implies a valuation ratio of 31.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
