Shares of MACOM Technology Solutions Holdings Inc. advanced 3.5% to close at $235.87 on Friday, maintaining momentum after the company's quarterly financial report. The stock reached an intraday high of $240.85 as investors assessed the semiconductor firm's performance and updated guidance.
Financial Performance and Outlook
For its fiscal first quarter, MACOM reported revenue of $271.6 million, with adjusted earnings per share of $1.02. Management provided second-quarter revenue guidance in the range of $281 million to $289 million, projecting adjusted EPS between $1.05 and $1.09. CEO Stephen Daly characterized the period as a solid start to the fiscal year.
A significant development from the earnings call was the company's decision to raise its full-year data center revenue growth projection to 35–40%, a substantial increase from a prior forecast of 20%. Executives cited a book-to-bill ratio of 1.3, indicating robust demand. They also noted a $55 million satellite communications program facing schedule adjustments and confirmed plans to repay $161 million in convertible notes with cash in March.
Analyst and Investor Activity
Stifel analyst Tore Svanberg responded to the results by raising his price target for MACOM to $255 from $215, maintaining a Buy rating. In regulatory filings, Fidelity's FMR LLC reported holding approximately 8.03 million shares, representing a 10.7% stake in the company as of January 30.
Separately, a Form 144 filing indicated that shareholder Susan Ocampo may sell up to 100,000 shares, with an estimated transaction date of February 6. Such filings signal intent and do not guarantee a sale will occur.
Despite the positive news, the stock remains sensitive to broader market conditions, particularly interest rate fluctuations that often impact high-multiple technology names. Investors are monitoring the sustainability of data center bookings and potential further delays in satellite program schedules.
Market participants are also looking ahead to key economic data releases, including the U.S. January jobs report on February 11 and the Consumer Price Index reading on February 13. U.S. markets will be closed on February 16 for the Washington's Birthday holiday.