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MaxLinear Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 7, 2017 at 12:03PM

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Just the facts, Fool.

MaxLinear (NYSE: MXL) reported earnings on Oct. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MaxLinear beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.

Gross margins shrank, operating margins increased, net margins increased.

Revenue details
MaxLinear booked revenue of $27.8 million. The four analysts polled by S&P Capital IQ hoped for revenue of $27.4 million on the same basis. GAAP reported sales were 58% higher than the prior-year quarter's $17.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.13. The four earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS were $0.01 for Q3 compared to -$0.35 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 62.8%, 140 basis points worse than the prior-year quarter. Operating margin was 1.6%, 1,950 basis points better than the prior-year quarter. Net margin was 1.6%, 6,620 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.1 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $100.6 million. The average EPS estimate is $0.13.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 17 members out of 27 rating the stock outperform, and 10 members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give MaxLinear a green thumbs-up, and two 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 $9.67.

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Stocks Mentioned

MaxLinear, Inc. Stock Quote
MaxLinear, Inc.
$35.45 (1.63%) $0.57

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