US stock futures flounder amid tech weakness, Fed caution
Investing.com - MACOM Technology Solutions (NASDAQ:MTSI) shares fell approximately 8% despite Evercore ISI raising its price target on the semiconductor company to $158.00 from $146.00 while maintaining an Outperform rating. According to InvestingPro data, MACOM’s market capitalization stands at $9.5 billion, with the stock trading above its Fair Value estimate.
The price target increase comes as MACOM reported earnings results that met or slightly beat expectations, according to Evercore ISI’s analysis of the company’s performance. InvestingPro data shows 12 analysts have revised their earnings upward for the upcoming period, with analyst targets ranging from $107 to $165.
Evercore ISI attributed the stock weakness to several factors, including data center revenue growth that was less robust than anticipated, with June quarter revenues increasing 5% quarter-over-quarter and similar growth projected for the September quarter.
The research firm also noted that an earlier-than-expected transfer of ownership for MACOM’s RTP fab from Wolfspeed (NYSE:WOLF) led to a September quarter gross margin outlook approximately 60 basis points below consensus estimates.
Higher capital expenditures also contributed to investor concerns, with Evercore ISI explaining this was due to a one-time purchase of discounted equipment intended to increase capacity at the RTP fabrication facility. Despite these concerns, MACOM maintains strong financial health metrics, with a current ratio of 3.56 and moderate debt levels. Get deeper insights into MACOM’s financial health and access exclusive analysis through InvestingPro, which offers comprehensive research reports for over 1,400 US stocks.
In other recent news, MACOM Technology Solutions Holdings Inc. reported its fiscal third-quarter 2025 earnings, with revenue figures exceeding analysts’ expectations. The company achieved a revenue of $252.1 million, surpassing the anticipated $248.85 million. Earnings per share stood at $0.90, aligning with the forecasts. These results highlight the company’s ability to generate higher-than-expected revenue, despite meeting the earnings per share projections. Additionally, the earnings call transcript noted these developments as significant for the quarter. MACOM’s performance in terms of revenue marks a positive deviation from the analysts’ projections. Such financial outcomes are crucial for investors evaluating the company’s recent performance. Analyst reactions to these results have not been specified in the available information.
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