Loop Capital has adjusted its price target for MaxLinear (MXL, Financial), reducing it from $18 to $10, while maintaining a Hold rating on the stock following the company's first-quarter results. Despite this adjustment, MaxLinear reported a strong performance and outlook, indicating no adverse effects on bookings from broader economic conditions. The company also shared an optimistic forecast for its optical segment, expecting revenues to double to between $60 million and $70 million in the fiscal year 2025, fueled by rising customer demand for its Keystone and Rushmore product lines.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for MaxLinear Inc (MXL, Financial) is $15.05 with a high estimate of $27.50 and a low estimate of $10.00. The average target implies an upside of 48.28% from the current price of $10.15. More detailed estimate data can be found on the MaxLinear Inc (MXL) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, MaxLinear Inc's (MXL, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MaxLinear Inc (MXL, Financial) in one year is $14.03, suggesting a upside of 38.23% from the current price of $10.15. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MaxLinear Inc (MXL) Summary page.
MXL Key Business Developments
Release Date: April 23, 2025
- Revenue: $95.9 million for Q1 2025, up from $92.2 million in the previous quarter.
- Non-GAAP Gross Margin: 59.1% of revenue.
- GAAP Gross Margin: 56.1% of revenue.
- Infrastructure Revenue: Approximately $27 million.
- Broadband Revenue: Approximately $41 million.
- Connectivity Revenue: $20 million.
- Industrial Multi-Market Revenue: $8 million.
- GAAP Operating Expenses: $99.9 million.
- Non-GAAP Operating Expenses: $58.4 million.
- GAAP Loss from Operations: 48% of net revenue.
- Non-GAAP Loss from Operations: 2% of net revenue.
- Cash Flow Used in Operating Activities: Approximately $11.4 million.
- Cash Equivalents and Restricted Cash: Approximately $104 million at the end of Q1 2025.
- Day Sales Outstanding: Approximately 94 days.
- Inventory Reduction: Gross inventory down by approximately $4.3 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MaxLinear Inc (MXL, Financial) exceeded the midpoint of its guidance with $95.9 million in revenue for Q1 2025.
- The company achieved a non-GAAP gross margin of 59.1% and reduced operating expenses significantly.
- MaxLinear Inc (MXL) anticipates being profitable on a non-GAAP basis and generating positive free cash flow in Q2 2025.
- Strong progress was made with new product wins in high-speed data center interconnects, WiFi, and Ethernet.
- The company is seeing meaningful improvement in customer order rates and backlog, indicating potential growth in 2025 and 2026.
Negative Points
- The semiconductor market faces substantial risks and uncertainties, including geopolitical dynamics and tariffs.
- GAAP operating expenses were high at $99.9 million, with significant costs related to stock-based compensation and restructuring.
- Cash flow used in operating activities was approximately $11.4 million in Q1 2025.
- The industrial multi-market revenue was relatively low at $8 million, indicating potential weakness in this segment.
- The company is navigating a challenging trade environment, which could impact demand and supply chain dynamics.
