MACOM Technology Solutions Q3 Results and Outlook
MACOM Technology Solutions (NASDAQ:MTSI) saw its shares rise 9.7% – reported as a roughly 10% jump – after releasing third‑quarter results that beat Wall Street expectations and providing guidance that significantly exceeded analyst forecasts.
The company posted adjusted earnings per share of $1.40 for the quarter, compared with the consensus estimate of $1.35. Revenue for the quarter was $342.2 million, surpassing the consensus of $335.6 million and representing a 35.8% increase over the same quarter a year earlier when revenue was $252.1 million.
Quarter‑over‑quarter, revenue grew 18.4% from $289.0 million in the prior quarter. Adjusted gross margin improved to 59.7%, up from 57.6% in the comparable period last year, while GAAP gross margin was 58.3%, compared with 55.3% YoY and 56.9% in the previous quarter.
Adjusted operating income reached $107.7 million, equal to 31.5% of revenue, versus $63.5 million (25.2% of revenue) in the third quarter of the prior fiscal year.
Looking ahead, MACOM forecast fourth‑quarter revenue in the range of $415 million to $425 million, well above the consensus estimate of $365.9 million. Adjusted EPS for Q4 is projected between $1.97 and $2.03, compared with the analyst consensus of $1.57. The company also expects adjusted gross margin for Q4 to lie between 60.0% and 61.0%, and it anticipates a non‑GAAP income tax rate of 3% for the quarter.
The firm reported 78.9 million fully diluted shares outstanding.
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