NASDAQ$MTSI

Macom Technology Solutions · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

MACOM's financial performance for Q2 2020 was reported, with revenue decreasing slightly year-over-year but increasing compared to the prior quarter, and adjusted operating income showing significant improvement.

MACOM reported a slight decrease in revenue compared to the previous year's fiscal second quarter but an increase compared to the prior fiscal quarter. The company's adjusted gross margin and adjusted operating income improved year-over-year and sequentially. MACOM expects revenue to be in the range of $129 million to $133 million for the fiscal third quarter.

  • Revenue was $126.4 million, a decrease of 1.6% year-over-year but an increase of 6.2% compared to the prior fiscal quarter.
  • Gross margin was 50.1%, compared to 44.6% in the previous year fiscal second quarter.
  • Adjusted gross margin was 54.5%, compared to 51.5% in the previous year fiscal second quarter.
  • Adjusted operating income was $19.6 million, or 15.5% of revenue, compared to $2.8 million, or 2.2% of revenue, in the previous year fiscal second quarter.

Headline financials

Total Revenue

$126M

Previous: $128M-1.6%
EPS (adj)

$0.17

Previous: -$0.18+194.4%
Adjusted Gross Margin

54.5%

Previous: 51.5%+5.8%
Capital Expenditures

-$9.04M

Previous: -$22.6M+60.0%
Free Cash Flow

-$19.3M

Previous: -$68.8M+72.0%
Net Income

-$10.2M

Previous: -$46.2M+77.9%
Operating Income

-$5.27M

Previous: -$30.2M+82.6%
Gross Profit

$63.4M

Previous: $57.3M+10.5%
Cash & Equivalents

$121M

Previous: $92.7M+30.3%
Total Assets

$1.11B

Previous: $1.42B-21.6%
Stock-Based Comp

$10.3M

Previous: $8.08M+27.2%

Revenue & EPS history

Macom · Revenue · Quarterly

$126M

Q2 2020-1.6%vs Q2 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

For the fiscal third quarter ending July 3, 2020, MACOM expects revenue to be in the range of $129 million to $133 million. Adjusted gross margin is expected to be between 54% and 56%, and adjusted earnings per share is expected to be between $0.19 and $0.23 on an anticipated 68.5 million fully diluted shares outstanding.

Tailwinds

  • Revenue to be in the range of $129 million to $133 million.
  • Adjusted gross margin is expected to be between 54% and 56%.
  • Adjusted earnings per share is expected to be between $0.19 and $0.23.
  • 68.5 million fully diluted shares outstanding.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.6%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+5.6%

Avg return

30 days after

55%

34 / 62 earnings

Positive

+24.0%

Q2 2018

Best reaction

-32.8%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+11.2%+17.0%+11.4%
Q1 2026+5.9%+7.2%-3.5%
Q4 2025+11.4%+13.6%+23.0%
Q2 2025+5.5%+8.7%+10.3%
Q1 2025-4.6%-9.9%-24.3%
Q4 2024+13.1%+8.2%+14.1%
Q3 2024-3.8%-3.7%+8.2%
Q2 2024+3.8%+3.9%+2.0%
Q1 2024-6.9%-7.3%+7.5%
Q4 2023+5.6%+12.2%+18.3%
Q3 2023+10.9%+12.7%+23.6%
Q2 2023-1.1%-5.7%+7.3%
Q1 2023-3.7%+0.1%+4.0%
Q4 2022+12.4%+15.6%+19.7%
Q3 2022+6.2%+8.0%+5.9%
Q2 2022-0.9%+2.9%+6.6%
Q1 2022-4.7%-2.8%-4.0%
Q4 2021-0.3%+0.7%+0.6%
Q3 2021+3.0%+1.7%+3.7%
Q2 2021-8.1%-12.5%-3.9%
Q1 2021+1.6%+13.4%+15.0%
Q4 2020+8.1%+3.4%+19.7%
Q3 2020+19.6%+17.1%+0.6%
Q2 2020+15.2%+8.9%+19.2%
Q1 2020+12.9%+4.5%-11.3%
Q4 2019+13.0%+10.5%+12.4%
Q3 2019-1.1%+0.4%+0.1%
Q2 2019+18.7%+15.2%+13.8%
Q1 2019-19.3%-13.0%-6.9%
Q4 2018+20.6%+21.0%+6.4%
Q3 2018-4.8%-0.7%+4.6%
Q2 2018+24.0%+29.1%+35.7%
Q1 2018-32.8%-33.8%-20.8%
Q4 2017-17.9%-10.2%-13.3%
Q3 2017-24.9%-30.4%-24.8%
Q2 2017-6.8%-9.5%+10.9%
Q1 2017-5.4%-1.9%-5.6%
Q4 2016+8.4%+15.1%+21.7%
Q3 2016+6.2%+6.1%+11.2%
Q2 2016+7.7%
Q1 2016-1.9%
Q4 2015+4.0%
Q3 2015+11.3%
Q2 2015+4.3%
Q1 2015-8.0%
Q4 2014+8.6%
Q3 2014-3.0%
Q2 2014+1.7%
Q1 2014+1.4%
Q4 2013-7.6%
Q3 2013+4.6%
Q2 2013-2.4%
Q1 2012-1.7%
Q1 2013+1.4%
Q4 2010+5.2%
Q1 2011+5.2%
Q4 2012+1.4%
Q3 2012-6.6%
Q3 2011-6.6%
Q2 2011-4.0%
Q2 2012-4.0%
Q4 2011-4.0%

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