MTSI Earnings Prediction
The chart below shows how MTSI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MTSI sees a -2.33% change in stock price 10 days leading up to the earnings, and a +4.29% change 10 days following the report. On the earnings day itself, the stock moves by +0.74%. This data can give you a slight idea of what to expect for the next quarter's release.
MTSI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
218.12M
38.80%
8.68%
Gross Margin
53.69%
-3.37%
-1.90%
Operating Margin
8.04%
14.69%
-41.40%
Net Margin
-76.81%
-1063.74%
-624.30%
EPS
-2.30
-1452.94%
-689.74%
No Data Available
MTSI Earnings Analysis
MACOM Technology Solutions Holdings Inc Corporation (MTSI.O) Earnings Conference Call
Positive
Record Q1 Revenue Growth: Revenue for Q1 was a record $218,000,000, up 8.7% sequentially, driven by growth across all three end markets.
Strong Cash Position: Free cash flow for Q1 was approximately $63,000,000, contributing to a strong cash position of approximately $657,000,000 in cash and short-term investments.
Strong Order Activity: The Q1 book to bill ratio was 1.1:1, indicating strong new order activity and a record backlog.
Q1 Adjusted Income Growth: Adjusted net income for Q1 increased to $59,500,000, with adjusted EPS rising to $0.79, up from $0.73 in the previous quarter.
Q2 Revenue Expectations: The company expects Q2 revenue to be in the range of $227,000,000 to $233,000,000, with sequential growth anticipated in all end markets.
Negative
Adjusted Gross Profit Analysis: Adjusted gross profit for fiscal Q1 was $125,300,000 or 57.5% of revenue, 60 basis points lower than the preceding quarter, indicating ongoing softness within certain industrial and telecom end markets.
Debt Refinancing Impact: The refinancing of approximately 65% or $289,000,000 of convertible notes resulted in a one-time non-cash loss on the extinguishment of the debt of $193,100,000, negatively impacting financial results.
Rising Operational Costs: Total adjusted operating expense for Q1 was $69,900,000, with a sequential increase of $4,000,000 primarily driven by higher compensation and R&D costs, indicating rising operational costs.
Book to Bill Ratio Insights: The Q1 book to bill ratio was 1.1:1, but the company noted pockets of weakness across its customer base, suggesting potential future revenue challenges.
Gross Margin Projections: Gross margins for the remainder of fiscal year 2025 are expected to be in the range of 57% to 58%, down from previous levels, due to lower wafer volumes and under absorbed costs.
MTSI FAQs
How does MTSI typically perform around its earnings report dates?
Is MACOM Technology Solutions Holdings Inc (MTSI) Q1 2025 Earnings Call Summary positive or negative?
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MTSI Earning Call Sentiment
Earnings call transcript: MACOM Tech Q1 2025 beats EPS forecast, stock dips
MTSI.O
-3.51%Positive
The earnings call summary shows strong financial performance with revenue and EPS growth, a robust cash position, and a positive book-to-bill ratio. Despite a slight decline in gross margin, the company's strategic focus on high-speed applications and strong backlog in defense revenues are promising. The Q&A section reveals optimism about future growth in data centers and satellite communications, though management was vague on some specifics. The issuance of convertible notes and share issuance may dilute shares but does not overshadow the overall positive outlook.
