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Investors Business Daily
Investors Business Daily

Chipmaker Macom Tops Quarterly Goals But Stumbles With Sales Outlook

Chipmaker Macom Technology Solutions on Thursday narrowly beat Wall Street's targets for its fiscal first quarter but offered mixed guidance. MTSI stock was among several semiconductor stocks moving on earnings news.

The Lowell, Mass.-based company earned an adjusted 81 cents a share on sales of $180.1 million in the quarter ended Dec. 30. Analysts polled by FactSet had expected earnings of 80 cents a share on sales of $179.6 million. On a year-over-year basis, Macom earnings increased 27% while sales climbed 13%.

For the current quarter, Macom forecast adjusted earnings of 78 cents a share on sales of $168 million. That's based on the midpoint of its guidance. Wall Street had predicted earnings of 76 cents a share on sales of $178.8 million for the fiscal second quarter ending March 31. In the same quarter last year, Macom earned 68 cents a share on sales of $165.1 million.

"We are pleased with our Q1 results," Chief Executive Stephen Daly said in a news release. "We remain focused on executing our long-term strategy to further our position as a leading supplier of high frequency, high power and high data rate semiconductor solutions."

MTSI Stock Below Buy Point

On the stock market today, MTSI stock dropped 2.9% to close at 66.52. On Wednesday, MTSI stock rose 2.3% to 68.53 amid a broad rally for semiconductor stocks.

MTSI stock has formed a cup-with-handle base with a buy point of 72.74, according to IBD MarketSmith charts.

Macom makes semiconductor products for telecommunications, industrial, defense, and data center applications.

Semiconductor Stocks On The Move

Other semiconductor stocks moving on earnings news Thursday included MaxLinear, Qorvo and SiTime. Those three chipmakers reported December-quarter results late Wednesday.

MaxLinear edged above Wall Street's targets for the fourth quarter, boosted by Wi-Fi chips, but its guidance was weak. Qorvo followed the same pattern, with its beat-and-miss report. So did timing-chip maker SiTime, which topped fourth-quarter expectations but missed views with its outlook. All three are facing elevated chip inventories in the sales channel.

On Thursday, MaxLinear fell 4.8% to 41.17. Qorvo retreated 5.8% to 106.97. SiTime rose 6.2% to 130.23.

Macom Ranks Ninth In Stock Group

MTSI stock ranks ninth out of 31 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 91 out of 99.

Qorvo ranks No. 14 in the chipmaker group with a Composite Rating of 68.

MaxLinear ranks seventh out of 34 stocks in IBD's fabless semiconductor industry group, with a Composite Rating of 91. SiTime is No. 18 in the group with a Composite Rating of 43.

IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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