Overview

• US semiconductor supplier's fiscal Q2 revenue rose 22.5% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company expects strong revenue growth and profitability in fiscal second half

Outlook

• MACOM expects fiscal Q3 revenue between $331 mln and $339 mln

• Company sees adjusted gross margin in Q3 between 59.0% and 60.0%

• MACOM expects Q3 adjusted EPS between $1.31 and $1.37

Result Drivers

• MARGIN IMPROVEMENT - Co reported higher gross and operating margins compared to prior year and prior quarter

• BUSINESS MOMENTUM - Co said it was pleased with first half results and expects strong revenue growth and profitability in the second half, per CEO Stephen G. Daly

Company press release: ID:nGNX3FMbM8

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$288.96 mln	$285.34 mln (14 Analysts)
Q2 Adjusted EPS	Beat	$1.09	$1.07 (14 Analysts)
Q2 Net Income		$46.33 mln
Q2 Gross Profit		$164.43 mln
Q2 Income From Operations		$50.83 mln
Q2 Pretax Profit		$56.92 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for MACOM Technology Solutions Holdings Inc is $280.00, about 9.6% below its May 6 closing price of $309.81

• The stock recently traded at 60 times the next 12-month earnings vs. a P/E of 48 three months ago

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