MaxLinear Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8h ago
0mins
Source: seekingalpha
- Strong Earnings Performance: MaxLinear reported a Q4 GAAP EPS of $0.19, beating expectations by $0.45, which highlights a significant improvement in profitability and boosts investor confidence.
- Robust Revenue Growth: The company achieved $136.4 million in revenue for Q4, representing a 48% year-over-year increase and exceeding market expectations by $1.6 million, indicating sustained strong demand for its products and further market share expansion.
- Effective Cost Control: The non-GAAP gross margin improved to 59.6%, up from 59.1% in the previous quarter, while non-GAAP operating expenses decreased from 47% to 43% of net revenue, demonstrating effective cost management.
- Improved Operational Efficiency: Non-GAAP income from operations rose to 16% of net revenue, up from 12% in the prior quarter and a loss of 7% a year ago, reflecting enhanced operational efficiency and profitability improvements.
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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: 19.140
Low
18.00
Averages
20.83
High
25.00
Current: 19.140
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 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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MaxLinear Reports 30% Revenue Growth in Q4 2025 Earnings Call
- Significant Revenue Growth: MaxLinear reported $136.4 million in revenue for Q4 2025, an impressive 48% year-over-year increase that exceeded market expectations, demonstrating strong execution in data center and wireless infrastructure sectors.
- Infrastructure Business Thriving: Infrastructure revenue reached approximately $47 million in Q4, up 76% year-over-year, and is projected to become the largest revenue contributor in 2026, reflecting robust demand for new products in high-growth markets.
- Optimistic Future Outlook: The company expects Q1 2026 revenue to range between $130 million and $140 million, despite seasonal declines in broadband and connectivity, indicating strong confidence in new design wins and market opportunities.
- Cash Flow and Buyback Program: Net cash flow from operating activities was approximately $10.4 million in Q4, with the company repurchasing about $20 million of its common stock, highlighting management's confidence in financial health and commitment to shareholder value.
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