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MaxLinear Soars 80% After Earnings Beat and Strong Data-Center Outlook

Management points to a multi-year growth phase powered by Keystone optical ramps at hyperscale customers.

Overview

  • MaxLinear shares, which surged about 80% Friday to roughly $61.52, rallied after Q1 results topped forecasts.
  • The company reported adjusted EPS of $0.22 on revenue of $137.2 million, beating estimates of $0.18 and $135 million and rising 43% year over year.
  • Infrastructure revenue tied to its Keystone optical transceivers jumped about 136% and became the largest segment, driven by ramps at major customers in the U.S. and Asia.
  • Guidance called for Q2 revenue of $160 million to $170 million, well above consensus, and raised full-year optical data-center revenue by $40 million to $150 million to $170 million.
  • Analysts responded with upgrades and higher targets, including Needham to Buy with a $60 target, Susquehanna to $45 with Neutral, and Stifel to $49 with Buy.