MACOM(US:MTSI) ZACKS·2025-11-06 18:05Core Insights - MACOM Technology Solutions Holdings, Inc. (MTSI) reported fourth-quarter fiscal 2025 earnings of 94 cents per share, beating the Zacks Consensus Estimate by a penny, with a year-over-year growth of 28.8% [1][8] - The company posted revenues of $261.2 million in the fourth quarter, surpassing the Zacks Consensus Estimate by 0.81% and reflecting a year-over-year growth of 32.3% [2][8] Financial Performance - Adjusted gross margin for the fourth quarter was 57.1%, down from 58.1% in the prior-year quarter [3] - Adjusted operating income increased to $67.0 million from $50.7 million year-over-year, with an adjusted operating income margin of 25.6%, up 40 basis points from the previous year [3] - Non-GAAP operating expenses were $82.1 million, a 24.6% increase year-over-year, representing 31.5% of revenues, which is a contraction of 140 basis points from the prior-year period [4] Balance Sheet and Cash Flow - As of October 3, 2025, cash equivalents and short-term investments totaled $785.9 million, an increase from $735.2 million in the prior quarter [5] - Long-term debt was reported at $339.6 million, slightly up from $339.4 million in the previous quarter [5] - Net cash flows from operating activities amounted to $235.4 million [5] Guidance - For the first quarter of fiscal 2026, MTSI expects revenues between $265 million and $273 million, indicating a year-over-year growth of 29.6% [6] - The company anticipates adjusted earnings per share between 98 cents and $1.02, with the Zacks Consensus Estimate for earnings at 93 cents, suggesting a growth of 27% year-over-year [6] Market Position - MTSI currently holds a Zacks Rank 3 (Hold) [7] - Other stocks in the sector with better rankings include Reddit Inc. (RDDT), Credo Technology Group (CRDO), and Amphenol (APH), all carrying a Zacks Rank 1 (Strong Buy) [7]