MaxLinear (MXL) Exceeds Expectations with Q3 Earnings and Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Earnings Performance: MaxLinear reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12, and showing a significant improvement from a loss of $0.36 per share a year ago.
Revenue Growth: The company achieved revenues of $126.46 million for the quarter, surpassing expectations and marking a substantial increase from $81.1 million in the same quarter last year.
Stock Outlook: Despite the positive earnings report, MaxLinear shares have declined by 15.2% year-to-date, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Semiconductor - Analog and Mixed industry is performing well, ranking in the top 15% of Zacks industries, which could influence MaxLinear's stock performance moving forward.
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Analyst Views on MXL
Wall Street analysts forecast MXL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MXL is 20.83 USD with a low forecast of 18.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 19.270
Low
18.00
Averages
20.83
High
25.00
Current: 19.270
Low
18.00
Averages
20.83
High
25.00
About MXL
MaxLinear, Inc. is a provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits for access and connectivity, wired and wireless infrastructure, and industrial and multi-market applications. It is engaged in providing communications systems-on-chip (SoCs), used in broadband, mobile and wireline infrastructure, data center, and industrial and multi-market applications. Its customers include electronics distributors, module makers, original equipment manufacturers, and original design manufacturers, who incorporate its products in a range of electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers targeting hyperscale data centers; Wi-Fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line; as well as power management and interface products used in markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MAXLINEAR STOCK PLUNGES 8.8% FOLLOWING Q4 REPORT
- Stock Performance: Maxline shares experienced a significant drop of 8.8% following the release of their Q4 results.
- Market Reaction: The decline in share price indicates a negative market reaction to the company's quarterly performance.
- Financial Results: The Q4 results may have failed to meet investor expectations, contributing to the decrease in stock value.
- Future Outlook: Analysts and investors will likely be closely monitoring the company's future performance and strategies following this downturn.
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MaxLinear Q4 Earnings Preview and Buyback Plan
- Earnings Announcement: MaxLinear is set to announce its Q4 earnings on January 29, with consensus EPS estimates at $0.18, reflecting a substantial 300% year-over-year increase, and revenue expectations at $134.8 million, up 46.3% year-over-year, indicating strong growth potential.
- Historical Performance: Over the past two years, MaxLinear has surpassed EPS estimates 63% of the time and revenue estimates 75% of the time, demonstrating reliability in performance forecasts and bolstering market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 4 upward revisions and 5 downward adjustments, while revenue estimates have experienced 10 upward revisions with no downward changes, reflecting optimistic market sentiment regarding the company's future growth.
- Stock Buyback Plan: MaxLinear has announced a $75 million stock buyback plan aimed at enhancing shareholder value and reflecting confidence in its future performance, which may also positively impact its stock price.
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