In This Article:
MACOM Technology Solutions Holdings, Inc. MTSI reported second-quarter fiscal 2025 earnings of 85 cents per share, which beat the Zacks Consensus Estimate by 1.2%. This company reported earnings of 59 cents per share a year ago.
MACOM Technology’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on the other two occasions, the average surprise being 0.75%.
MTSI posted revenues of $235.89 million in the second quarter of fiscal 2025, surpassing the Zacks Consensus Estimate by 2.52%. This company reported revenues of $181.23 million in the year-ago quarter.
MACOM Technology’s better-than-expected results and upbeat guidance for third-quarter fiscal 2025 results pushed MTSI shares up by 5.55% in Thursday's trading session.
MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise
MACOM Technology Solutions Holdings, Inc. price-consensus-eps-surprise-chart | MACOM Technology Solutions Holdings, Inc. Quote
MTSI Top Line in Detail
Telecom Market: MTSI generated revenues of $65.2 million (27.6% of the total revenues) from the market, up 38.1% year over year. The telecom segment is growing on the back of high demand for its products to expand the 5G market in the United States. MACOM Technology is also experiencing significant growth in 100G/lane platforms, 800G SR8, 400G SR4, and early adoption of 1.6T platforms.
Data Center Market: The market generated revenues of $72.2 million (30.6% of the total revenues), up 67.2% year over year. MACOM Technology’s data center end market is growing on the back of strong demand for its products by Internet service providers. MACOM Technology is experiencing strong traction in its 800G, 1.6T, Linear Pluggable Optics and Active Copper Cables offerings.
Industrial & Defense Market: MACOM generated revenues of $98.5 million (41.8% of the total revenues) from the market, up 8.4% year over year. MACOM is experiencing high demand for products, including electronic warfare, secure communications and integrated battlefield systems. Additionally, MTSI is benefiting from increasing European defense exposure, with the MESC facility (France) expanding.
Operating Details
In the second quarter of fiscal 2025, MTSI’s non-GAAP gross margin was 57.5%, which expanded 40 basis points (bps) from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
In the reported quarter, non-GAAP operating expenses were $75.8 million, which increased 8.4% from the year-ago quarter. As a percentage of revenues, the figure contracted 280 basis points to 32.1%.