Earnings Update: Here's Why Analysts Just Lifted Their MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) Price Target To US$146

The investors in MACOM Technology Solutions Holdings, Inc.'s (NASDAQ:MTSI) will be rubbing their hands together with glee today, after the share price leapt 22% to US$138 in the week following its yearly results. It was a credible result overall, with revenues of US$730m and statutory earnings per share of US$1.04 both in line with analyst estimates, showing that MACOM Technology Solutions Holdings is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for MACOM Technology Solutions Holdings

Taking into account the latest results, the current consensus from MACOM Technology Solutions Holdings' 13 analysts is for revenues of US$907.8m in 2025. This would reflect a major 24% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 97% to US$2.09. Before this earnings report, the analysts had been forecasting revenues of US$866.5m and earnings per share (EPS) of US$1.90 in 2025. So it seems there's been a definite increase in optimism about MACOM Technology Solutions Holdings' future following the latest results, with a nice gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for MACOM Technology Solutions Holdings 24% to US$146on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on MACOM Technology Solutions Holdings, with the most bullish analyst valuing it at US$160 and the most bearish at US$105 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await MACOM Technology Solutions Holdings shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MACOM Technology Solutions Holdings' past performance and to peers in the same industry. The analysts are definitely expecting MACOM Technology Solutions Holdings' growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MACOM Technology Solutions Holdings to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MACOM Technology Solutions Holdings' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MACOM Technology Solutions Holdings going out to 2027, and you can see them free on our platform here..

You can also see our analysis of MACOM Technology Solutions Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.