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MACOM Technology Solutions Holdings, Inc. MTSI reported first-quarter fiscal 2025 earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 78 cents by 1.3%. The figure increased 36.2% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
MACOM’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on the other two occasions, the average surprise being 0.75%.
MACOM’s revenues increased 38.8% year over year to $218.12 million and surpassed the Zacks Consensus Estimate by 1.4%.
MACOM’s better-than-expected results and upbeat guidance for second-quarter fiscal 2025 results are likely to drive the stock upward, which has already surged 60.2% in the past year, outperforming the Zacks Semiconductor - Analog and Mixed industry’s decline of 4.5%.
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 $55.4 million (25.4% of the total revenues) from the market, up 81% year over year. The telecom segment is growing on the back of high demand for its products to expand the 5G market in the United States. MACOM is also experiencing significant growth in market share in the satellite communication market especially the Low Earth Orbit satellite-based broadband networking.
Data Center Market: The market generated revenues of $65.3 million (29.9% of the total revenues), up 32% year over year. MACOM’s data center end market is growing on the back of strong demand for its products by Internet service providers. MACOM is experiencing strong traction in its 800G, 1.6T, Linear Pluggable Optics and Active Copper Cables offerings.
Industrial & Defense Market: MACOM generated revenues of $97.4 million (44.7% of the total revenues) from the market, up 26.5% year over year. MACOM is experiencing high demand for products, including electronic warfare, secure communications and integrated battlefield systems. MTSI’s Industrial & Defense segment is approaching $100 million each quarter with traction in radar, electronic warfare, secure communications and DoD’s satellite communication investments.
Operating Details
In the first quarter of fiscal 2025, MTSI’s non-GAAP gross margin was 57.5%, which contracted 170 basis points (bps) from the year-ago quarter.
In the reported quarter, non-GAAP operating expenses were $69.9 million, which increased 28.2% from the year-ago quarter. As a percentage of revenues, the figure contracted 260 bps to 32.1%.