MACOM -16.8% on Q1 misses, weak forecast, analyst actions

|About: MACOM Technology Solutions ... (MTSI)|By:, SA News Editor

MACOM (NASDAQ:MTSI) shares are down 16.8% premarket after Q1 results that missed EPS and revenue estimates.

Q2 guidance: Revenue, $142M to $150M ($148.75M); EPS, $0.10 to $0.16 (consensus: $0.27). 

Key metrics: Gross margin, 53.7%; operating margin, 10.3%; adjusted EBITDA, $20.9M. 

CEO John Croteau: “As expected, the first quarter was challenging across the board, as we dealt with the full impact of the geopolitical downturn in China. While it is still too early to call the exact slope of the recovery, we continue to believe that December was the bottom of the cycle for MACOM, and we expect demand will progressively strengthen through the remainder of the year.” 

Company expects 2018 “will be a transitional year in our served markets” and that the shifts towards infrastructure investments “will likely moderate the pace of recovery” but could position the company for future growth.  

Press release 

Analyst actions: DA Davidson lowers its MACOM price target from $43 to $32. Barclays downgrades the company from Overweight to Equal Weight. (Source:    

Previously: MACOM Technology misses by $0.03, misses on revenue (Feb. 6)

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