Maxlinear tumbles as Needham downgrades after weak Q2, guidance
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Contributor since / Followers
Contributor since / Followers
4 months ago
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- Maxlinear (NASDAQ:MXL) shares were in focus on Thursday after the semiconductor company reported much weaker-than-expected quarterly results and guidance, prompting investment firm Needham to downgrade the stock.
- Shares fell 26.5% in premarket trading.
- Despite positive bookings and some positive commentary about inventory, MaxLinear guided its revenue below Wall Street estimates for the seventh straight quarter, as visibility into a recovery does not seem to be getting any clearer, analyst N. Quinn Bolton wrote. Bolton lowered his rating on MaxLinear to Hold from Buy.
- Additionally, MaxLinear may be getting “squeezed” by Broadcom (AVGO), which is believed to have long-term agreements with cable multiple systems operators.
- Separately, MaxLinear’s infrastructure segment, which was expected to drive growth in the back half of 2024, has become “challenged” over the near-term, excluding optical digital signal processors, Bolton added.
- Other concerns include the overhang regarding to the Silicon Motion (SIMO) situation and the potential for a $160M breakup fee; any additional export control curbs to China, which could impact top-line growth; and other revenue-related concerns.
- Analysts are largely bullish on MaxLinear’s (MXL). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha’s quant system, which consistently beats the market, rates MXL a HOLD.