MACOM Technology Solutions Holdings, Inc. MTSI reported fourth-quarter fiscal 2024 earnings of 73 cents per share, which came in line with the Zacks Consensus Estimate. The figure increased 30.4% year over year.

MACOM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.32%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

MACOM’s revenues increased 33.5% year over year to $200.71 million but marginally missed the Zacks Consensus Estimate by 0.23%.

After reporting its fiscal fourth-quarter earnings, MACOM shares gained more than 14%. Shares of MACOM have plunged 49.7% year to date, outperforming the Zacks Computer & Technology sector’s return of 28.5%.

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’s Top Line in Detail

Telecom Market: MTSI generated revenues of $51.7 million (25.8% of the total revenues) from the market, up 69% year over year. The telecom segment is growing on the back of high demand for its products used 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 $56.2 million (28% of the total revenues), up 38.8% from the year-ago quarter. MACOM’s data center end market is growing on the back of strong demand for its products by Internet service providers.

Industrial & Defense Market: MACOM generated revenues of $92.8 million (17.2% of the total revenues) from the market, up 8.8% year over year. MACOM is experiencing high demand for products, including electronic warfare, secure communications and integrated battlefield systems.

Operating Details

In the fourth quarter of fiscal 2024, MTSI’s non-GAAP gross margin was 58.1%, which contracted 200 basis points (bps) from the year-ago quarter.

In the reported quarter, non-GAAP operating expenses were $65.9 million, which increased 24.1% from the year-ago quarter. As a percentage of revenues, the figure contracted 240 bps to 32.9%.

Consequently, MTSI’s non-GAAP operating margin was 25.2%, which expanded 50 bps from the prior-year quarter’s figure.

Balance Sheet

As of Sept. 27, 2024, cash equivalents and short-term investments were $581.9 million, up from $521.5 million as of June 28, 2024.

Inventories were $194.5 million, up from $190.7 million in the previously reported quarter.