MaxLinear (NASDAQ:MXL) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Earnings beat but still unprofitable: MaxLinear reported Q EPS of $0.22, beating estimates by $0.03 with revenue of $137.19M, yet the company shows a negative net margin (−29.23%) and negative ROE.
• Stock moved higher on volume: Shares traded up to $34.25 on heavy volume, giving a market cap around $2.96 billion and trading near its 1‑year high despite a negative P/E.
• Mixed analyst and insider signals: The consensus rating is "Hold" with an average target of $23.29 (well below the current price), several analysts are split on ratings, and insiders have recently sold shares while institutions own about 90.8% of the stock.

MaxLinear (NASDAQ:MXL - Get Free Report) released its earnings results on Thursday. The semiconductor company reported $0.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.19 by $0.03, FiscalAI reports. The company had revenue of $137.19 million during the quarter, compared to analyst estimates of $137.15 million. MaxLinear had a negative return on equity of 6.95% and a negative net margin of 29.23%.

MaxLinear Price Performance

Shares of MaxLinear stock traded up $0.36 during midday trading on Thursday, reaching $34.25. The company had a trading volume of 4,111,859 shares, compared to its average volume of 1,446,075. The company has a current ratio of 1.34, a quick ratio of 0.92 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $2.96 billion, a price-to-earnings ratio of -21.68 and a beta of 1.70. The stock has a fifty day simple moving average of $19.18 and a 200 day simple moving average of $17.78. MaxLinear has a 1-year low of $9.07 and a 1-year high of $37.37.

Wall Street Analyst Weigh In

MXL has been the subject of a number of research analyst reports. Benchmark increased their target price on MaxLinear from $25.00 to $28.00 and gave the company a "buy" rating in a report on Friday, January 16th. Susquehanna reissued a "neutral" rating and set a $30.00 target price on shares of MaxLinear in a research report on Monday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MaxLinear in a research report on Tuesday. Stifel Nicolaus set a $34.00 price target on MaxLinear in a research report on Tuesday. Finally, Wells Fargo & Company increased their target price on shares of MaxLinear from $18.00 to $20.00 and gave the company an "equal weight" rating in a research note on Friday, January 30th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $23.29.

Insider Buying and Selling

In other MaxLinear news, insider Steven G. Litchfield sold 20,000 shares of MaxLinear stock in a transaction on Friday, March 6th. The shares were sold at an average price of $15.68, for a total transaction of $313,600.00. Following the completion of the sale, the insider owned 343,435 shares of the company's stock, valued at approximately $5,385,060.80. The trade was a 5.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders have sold 44,929 shares of company stock worth $746,456. 7.70% of the stock is currently owned by insiders.

Institutional Trading of MaxLinear

Hedge funds have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. bought a new stake in MaxLinear in the 4th quarter valued at $25,000. Smartleaf Asset Management LLC raised its holdings in shares of MaxLinear by 103.0% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company's stock valued at $25,000 after purchasing an additional 726 shares during the period. Quarry LP raised its holdings in shares of MaxLinear by 1,293.0% in the 3rd quarter. Quarry LP now owns 2,187 shares of the semiconductor company's stock valued at $35,000 after purchasing an additional 2,030 shares during the period. Raymond James Financial Inc. acquired a new stake in MaxLinear in the 2nd quarter valued at about $51,000. Finally, iSAM Funds UK Ltd acquired a new stake in MaxLinear in the 3rd quarter valued at about $58,000. Institutional investors and hedge funds own 90.79% of the company's stock.

MaxLinear Company Profile

MaxLinear, Inc is a provider of radio-frequency (RF), analog, and mixed-signal integrated circuits for broadband communications, data center connectivity, and video infrastructure applications. The company's product portfolio includes high-performance RF front-end modules, broadband power amplifiers, optical and Ethernet transceivers, and network processors designed to support demanding signal processing requirements.

MaxLinear's semiconductor solutions are used by cable and satellite television operators, fiber-to-the-home service providers, network equipment manufacturers, and data center operators.

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