MaxLinear Goes Negative
MaxLinear (NYS: MXL) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MaxLinear beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
MaxLinear notched revenue of $19.3 million. The three analysts polled by S&P Capital IQ expected revenue of $18.7 million. Sales were 22% higher than the prior-year quarter's $15.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.05. The five earnings estimates compiled by S&P Capital IQ forecast -$0.04 per share on the same basis. GAAP EPS were -$0.14 for Q4 against $0.16 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 60.8%, 490 basis points worse than the prior-year quarter. Operating margin was -22.3%, 1,550 basis points worse than the prior-year quarter. Net margin was -24.3%, 6,000 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $19.6 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $92.3 million. The average EPS estimate is -$0.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 19 members out of 24 rating the stock outperform, and five members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give MaxLinear a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MaxLinear is buy, with an average price target of $10.25.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.