Group 1 - M/A-Com reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and showing an increase from $0.59 per share a year ago, representing an earnings surprise of 1.19% [1] - The company achieved revenues of $235.89 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.52%, and up from $181.23 million year-over-year [2] - M/A-Com has outperformed consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock has underperformed the market, losing about 12.7% since the beginning of the year compared to the S&P 500's decline of 4.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $235 million, and for the current fiscal year, it is $3.43 on revenues of $926.29 million [7] Group 3 - The Semiconductor - Analog and Mixed industry, to which M/A-Com belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - M/A-Com currently holds a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Revenue for Q2 fiscal 2025 was $235.9 million, an increase of 8.1% sequentially, with adjusted EPS at $0.85 per diluted share [5][28] - Adjusted gross profit for Q2 was $135.6 million, representing 57.5% of revenue, consistent with previous quarters [28] - Adjusted net income increased approximately 8% to $64.3 million compared to $59.5 million in Q1 [33] - Cash and short-term investments totaled $681.5 million, up $25 million from Q1 [36] Business Line Data and Key Metrics Changes - Revenue by end market: Industrial and Defense at $98.5 million, Data Center at $72.2 million, and Telecom at $65.2 million [6] - Telecom revenue increased 18% sequentially, Data Center up 11%, and Industrial and Defense up 1% [6] - The Q2 book-to-bill ratio was 1.1, indicating strong bookings and a record backlog [7] Market Data and Key Metrics Changes - Industrial and Defense demand is growing due to U.S. and international DoD system upgrades [8] - Telecom order trends are improving, particularly in 5G infrastructure and broadband access [9] - Data Center business remains strong, driven by demand from cloud service providers [10] Company Strategy and Development Direction - The company focuses on designing semiconductor products for high power, high frequency, and high data rate applications [14][22] - Plans to expand European presence and capabilities through the acquisition of a wafer fab in France [72] - Emphasis on innovation in semiconductor process technologies to maintain competitive advantage [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased uncertainty in the markets but remains optimistic about product portfolio and growth strategy [39] - The company expects revenue for Q3 to be in the range of $246 million to $254 million, with growth anticipated across all end markets [39] - Management highlights the volatility in the data center market but sees potential for continued growth driven by high data rate trends [44][46] Other Important Information - The company is transitioning the Wolfspeed RF business fab, with activities on or ahead of schedule [24] - Recent customer engagements include a supplier award from BAE and pilot production orders from a European radar manufacturer [26] Q&A Session Summary Question: Data center business growth sustainability - Management indicated that the data center business has been growing and is on track for mid-forty percent year-over-year growth, driven by higher data rates and industry trends [43][44] Question: Impact of Wolfspeed RF fab transition on gross margins - Management noted that while the RF business had low profitability initially, efforts are being made to improve margins, and the transition is expected to be neutral or positive for gross margins [48][50] Question: Budget trends in data centers - Management sees continued investment from ISPs in data centers and high levels of innovation in platforms, indicating a positive outlook for growth [55][56] Question: SATCOM business growth and opportunities - Management highlighted the growth in the SATCOM business, particularly with new product lines like the OptoAmp, and the shift to higher frequency bands [60][62] Question: European defense spending exposure - Management confirmed growing direct exposure to European defense spending, supported by the acquisition of a wafer fab in France [72][74]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $235.9 million, an increase of 8.1% sequentially, with adjusted EPS at $0.85 per diluted share [4][26] - Adjusted gross profit was $135.6 million, representing 57.5% of revenue, consistent with previous quarters [26] - Adjusted operating income increased to $59.8 million, up 8% sequentially from $55.4 million in Q1 [28] - Adjusted net income rose approximately 8% to $64.3 million compared to $59.5 million in Q1 [30] - Cash flow from operations was approximately $38.7 million, down $28 million sequentially but up over $20 million year-over-year [32] Business Line Data and Key Metrics Changes - Revenue by end market: Industrial and Defense at $98.5 million, Data Center at $72.2 million, and Telecom at $65.2 million [5] - Telecom revenue increased by 18% sequentially, Data Center by 11%, and Industrial and Defense by 1% [5] - The Q2 book-to-bill ratio was 1.1, indicating strong bookings and a record backlog [6] Market Data and Key Metrics Changes - Demand in the Industrial and Defense sector is growing, driven by U.S. and international Department of Defense upgrades [6] - Telecom order trends are improving, particularly in 5G infrastructure and broadband access [7] - The Data Center business remains strong, with demand from cloud service providers and rapid shifts in technology deployments [8] Company Strategy and Development Direction - The company focuses on designing semiconductor-based products for high power, high frequency, and high data rate applications [13][21] - MACOM aims to build a best-in-class semiconductor portfolio, emphasizing advanced process development and innovation [14] - The strategy includes expanding capabilities in Europe and enhancing the European Semiconductor Center's offerings [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased uncertainty in the markets but remains confident in the product portfolio and long-term growth strategy [37] - The company expects Q3 revenue to be in the range of $246 million to $254 million, with growth anticipated across all end markets [37] - Industrial and Defense is expected to lead with approximately 10% sequential growth, followed by Data Center at 5% [37] Other Important Information - The transition of the Wolfspeed RF business fab is on or ahead of schedule, with plans to increase capacity by up to 30% [22] - The company received a supplier award from BAE for quality and delivery performance [24] Q&A Session Summary Question: Data center business growth sustainability - The data center business has been growing significantly, with expectations of mid-40% year-over-year growth for fiscal 2025, driven by higher data rates and industry trends [40][41] Question: Impact of Wolfspeed RF fab transition on gross margins - The transition is expected to be neutral or positive to gross margins, with ongoing improvements anticipated as the fab comes under MACOM's control [46][50] Question: Budget trends in the data center market - Continued investment from ISPs in data centers is expected, with significant innovation in high-speed connectivity solutions [52][54] Question: SATCOM business growth and opportunities - The SATCOM business is growing, with new product lines like the OptoAmp enhancing market opportunities, particularly in high-frequency applications [58][60] Question: Exposure to European defense spending - MACOM's direct exposure to European defense spending is increasing, supported by the acquisition of a wafer fab in France [70][72]

Revenue Performance - Revenue for Q2 2025 was $235.9 million, an increase of 30.2% year-over-year from $181.2 million and an increase of 8.1% from the prior quarter's $218.1 million[7]. - Revenue for the three months ended April 4, 2025, was $235.887 million, a 8.1% increase from $218.122 million in the same period last year[26]. Profitability Metrics - Gross margin for Q2 2025 was 55.2%, compared to 52.5% in the same quarter last year and 53.7% in the prior quarter[7]. - Adjusted net income for Q2 2025 was $64.3 million, or $0.85 per diluted share, up from $43.2 million, or $0.59 per diluted share, in the same quarter last year[7]. - The company reported net income of $31.7 million for Q2 2025, compared to a net income of $15.0 million in the same quarter last year[7]. - Basic income per share for the three months ended April 4, 2025, was $0.43, compared to a loss of $2.30 per share in the same period last year[26]. - Net income for the three months ended April 4, 2025, was $31,666 million, representing 13.4% of revenue, compared to a net loss of $167,530 million (-76.8%) in the previous quarter[32]. Future Guidance - For Q3 2025, MACOM expects revenue to be between $246 million and $254 million, with an adjusted gross margin of 56.5% to 58.5%[5]. - The anticipated non-GAAP income tax rate for Q3 2025 is 3%[5]. Operational Efficiency - Adjusted income from operations for Q2 2025 was $59.8 million, or 25.4% of revenue, compared to $40.2 million, or 22.2% of revenue, in the same quarter last year[7]. - Adjusted gross margin for Q2 2025 was 57.5%, consistent with the prior quarter and slightly up from 57.1% in the same quarter last year[7]. - Income from operations for the three months ended April 4, 2025, was $34,870 million, or 14.8% of revenue, up from $17,527 million (8.0%) in the previous quarter[32]. Research and Development - Research and development expenses for the three months ended April 4, 2025, were $57.837 million, a decrease of 4.4% from $60.369 million in the prior year[26]. Cash Flow and Assets - The company reported a net cash provided by operating activities of $105.346 million for the six months ended April 4, 2025, compared to $51.302 million for the same period last year[30]. - Total assets increased to $1.918 billion as of April 4, 2025, from $1.756 billion a year earlier, reflecting a growth of 9.2%[28]. - The company had cash and cash equivalents of $110.926 million at the end of the period, down from $146.806 million at the beginning of the period[30]. Liabilities - Total liabilities were $716.525 million as of April 4, 2025, compared to $629.297 million a year earlier, indicating an increase of 13.9%[28]. - The company incurred a loss on extinguishment of debt amounting to $193.098 million during the six months ended April 4, 2025[30]. Customer Base - MACOM services over 6,000 customers annually across various industries, including Industrial and Defense, Data Center, and Telecommunications[8]. Shareholder Information - The company had 75,741 diluted shares for the three months ended April 4, 2025, compared to 72,780 in the previous quarter[32].

Financial Performance - MACOM reported revenue of $235.9 million for the fiscal second quarter of 2025, representing a 30.2% increase year-over-year from $181.2 million and an 8.1% increase from the previous quarter's revenue of $218.1 million [10] - The gross margin for the quarter was 55.2%, up from 52.5% in the same quarter last year and 53.7% in the prior quarter [10] - Income from operations was $34.9 million, or 14.8% of revenue, compared to $15.4 million (8.5% of revenue) in the same quarter last year and $17.5 million (8.0% of revenue) in the prior quarter [10] - Net income for the quarter was $31.7 million, or $0.42 per diluted share, compared to a net income of $15.0 million ($0.20 per diluted share) in the same quarter last year and a net loss of $167.5 million ($2.30 loss per diluted share) in the prior quarter [10][24] Business Outlook - For the fiscal third quarter ending July 4, 2025, MACOM expects revenue to be in the range of $246 million to $254 million, with an adjusted gross margin expected between 56.5% and 58.5% [4] - Adjusted earnings per diluted share are anticipated to be between $0.87 and $0.91, utilizing a non-GAAP income tax rate of 3% and 76.5 million fully diluted shares outstanding [4] Company Overview - MACOM Technology Solutions Holdings, Inc. designs and manufactures high-performance semiconductor products for various industries, including Industrial and Defense, Data Center, and Telecommunications [6] - The company services over 6,000 customers annually and has a broad product portfolio that includes RF, Microwave, Analog, Mixed Signal, and Optical semiconductor technologies [6] - MACOM has achieved certifications for automotive, aerospace, and international quality standards, and operates facilities across the United States, Europe, and Asia [6]

Wall Street analysts expect M/A-Com (MTSI) to post quarterly earnings of $0.84 per share in its upcoming report, which indicates a year-over-year increase of 42.4%. Revenues are expected to be $230.08 million, up 27% from the year-ago quarter.The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company anno ...

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2][3] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Style Score identifies undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses stocks based on projected and historical earnings, sales, and cash flow to find those with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating factors like short-term price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9][10] Company Spotlight: M/A-Com Technology Solutions - MACOM Technology Solutions Holdings, Inc. specializes in power analog semiconductor solutions for various markets, including RF, microwave, and millimeter wave devices [11] - Currently rated 3 (Hold) with a VGM Score of B, MTSI has a Momentum Style Score of A and has seen a 3.7% increase in shares over the past four weeks [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.03 to $3.43 per share, indicating a positive outlook for the company [12]

Core Viewpoint - M/A-Com (MTSI) is anticipated to report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended March 2025, with actual results being a significant factor influencing its near-term stock price [1][2]. Financial Expectations - The consensus estimate for M/A-Com's quarterly earnings is $0.84 per share, reflecting a year-over-year increase of 42.4% [3]. - Expected revenues for the quarter are $230.08 million, which represents a 27% increase compared to the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.96% higher, indicating a collective reassessment by covering analysts [4]. - The Most Accurate Estimate for M/A-Com aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [7][8]. - M/A-Com currently holds a Zacks Rank of 3, making it challenging to predict a consensus EPS beat conclusively [11]. Historical Performance - In the last reported quarter, M/A-Com was expected to post earnings of $0.78 per share but exceeded expectations with earnings of $0.79, resulting in a surprise of 1.28% [12]. - Over the past four quarters, M/A-Com has beaten consensus EPS estimates two times [13]. Conclusion - While M/A-Com does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of its earnings release [16].

Core Viewpoint - MACOM Technology Solutions Holdings, Inc. is set to announce its financial results for the second quarter ending April 4, 2025, on May 8, 2025, before market opening, followed by a conference call with key executives [1]. Company Overview - MACOM designs and manufactures high-performance semiconductor products for various industries, including Telecommunications, Industrial, Defense, and Datacenter [3]. - The company serves over 6,000 customers annually and offers a broad product portfolio that includes RF, Microwave, Analog, Mixed Signal, and Optical semiconductor technologies [3]. - MACOM has achieved multiple certifications, including IATF16949 for automotive, AS9100D for aerospace, ISO9001 for international quality, and ISO14001 for environmental management [3]. - The company operates facilities across the United States, Europe, and Asia, with its headquarters located in Lowell, Massachusetts [3].

Group 1 - M/A-Com (MTSI) shares increased by 21.6% to $106.59, following a broader market rally after President Trump's announcement to pause reciprocal tariffs for 90 days, although a baseline tariff of 10% on imports remains [1] - The upcoming quarterly earnings for M/A-Com are expected to be $0.84 per share, reflecting a year-over-year increase of 42.4%, with revenues projected at $230.08 million, up 27% from the previous year [2] - The consensus EPS estimate for M/A-Com has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Group 2 - ON Semiconductor Corp. shares closed 22.7% higher at $39.20, but have seen a decline of 25.5% over the past month [3] - The consensus EPS estimate for ON Semiconductor Corp. is $0.51, which represents a significant decrease of 52.8% compared to the previous year [4] - ON Semiconductor Corp. currently holds a Zacks Rank of 5 (Strong Sell), indicating a negative outlook [4]