Network chips maker MACOM Technology Solutions (NASDAQ: MTSI) will be reporting results tomorrow before the bell. Here’s what to look for.

MACOM met analysts’ revenue expectations last quarter, reporting revenues of $190.5 million, up 28.3% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates and a decline in its gross margin.

Is MACOM a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting MACOM’s revenue to grow 33.3% year on year to $200.5 million, a reversal from the 15.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MACOM has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.7% on average.

Looking at MACOM’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 46.4%, beating analysts’ expectations by 2.5%, and Monolithic Power Systems reported revenues up 30.6%, topping estimates by 3.3%. Impinj traded down 13.1% following the results while Monolithic Power Systems was also down 17.4%.

Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 4.4% on average over the last month. MACOM is up 3.4% during the same time and is heading into earnings with an average analyst price target of $117.92 (compared to the current share price of $116.69).

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