• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

MaxLinear stock plunges 30% after Q2 earnings miss, Needham downgrades: What investors need to know

by July 25, 2024
written by July 25, 2024

MaxLinear Inc. (NASDAQ: MXL), a prominent player in the radio frequency and mixed-signal integrated circuits sector, has experienced a dramatic 30% drop in its stock price following a disappointing Q2 2024 earnings report. 

The company’s performance fell significantly short of investor expectations, sparking a major decline in its stock value and prompting a critical downgrade by Needham.

MaxLinear’s disappointing earnings report

MaxLinear’s second-quarter results were underwhelming, with a Non-GAAP earnings per share (EPS) of -$0.25, missing estimates by $0.06. Revenue for the quarter dropped to $92 million, falling short of predictions by $8.25 million and marking a staggering 50% decrease compared to the same period last year. 

This sharp decline reflects ongoing challenges within the sector.

On a GAAP basis, MaxLinear’s revenue saw a slight sequential decrease of 3%, but a dramatic 50% drop year-over-year. 

Despite a modest improvement in GAAP gross margin to 54.6%, the company’s operating expenses consumed nearly all its revenue, leading to a GAAP loss from operations amounting to 44% of net revenue. 

Non-GAAP figures offered a slightly better outlook with gross margins at 60.2%, though operating expenses still represented 81% of net revenue, resulting in a non-GAAP loss from operations of 21%.

MaxLinear’s conservative revenue forecast 

Looking ahead to Q3 2024, MaxLinear has issued a conservative revenue forecast of $70 million to $90 million, significantly below both the previous year’s figures and Wall Street’s consensus estimate of $112.08 million. 

CEO Kishore Seendripu remains optimistic about the company’s strategic focus on wireless, optical interconnect, Ethernet, and Wi-Fi7 products, believing these areas have substantial growth potential.

What analysts say about MaxLinear

Following the earnings report, Needham analysts downgraded MaxLinear’s stock from a ‘Buy’ to a ‘Hold.’ 

This downgrade is based on a trend of revenue shortfalls over seven consecutive quarters and concerns over competitive pressures from industry giants like Broadcom. 

Needham analyst N. Quinn Bolton pointed out the lack of clear recovery prospects and potential market share losses due to Broadcom’s long-term agreements.

In contrast, Craig Hallum had earlier upgraded MaxLinear’s stock, reflecting a longer-term optimistic view driven by product and inventory cycle dynamics. Analyst Richard Shannon also raised his price target for the stock from $20 to $38, showcasing belief in MaxLinear’s future despite current challenges.

Investors should be cautious

MaxLinear faces significant market challenges, including fierce competition from Broadcom and potential financial uncertainties related to legal disputes with Silicon Motion. 

This competitive landscape, coupled with MaxLinear’s persistent downtrend since early 2022, has raised concerns among investors.

Technical analysis of MaxLinear’s stock reveals that, despite a period of stability since November last year, the recent earnings-induced drop has pushed the stock into a bearish phase. 

With the stock breaking below its recent swing low at $16.20, investors should be cautious. The strong bearish momentum suggests that potential buyers should wait for signs of a shift before considering an investment.

For traders looking to capitalize on the downward trend, shorting the stock near $15.80 with a stop loss at $18.56 may be a viable strategy. If bearish momentum continues, the stock could potentially reach previous swing lows around $13.43, providing an opportunity for profit-taking.

Finally, MaxLinear’s significant earnings miss and subsequent stock decline highlight the need for investors to carefully evaluate the company’s financial health and market position. 

The combination of disappointing results, strategic adjustments, and analyst opinions suggests a challenging period ahead for the company and its stakeholders.

The post MaxLinear stock plunges 30% after Q2 earnings miss, Needham downgrades: What investors need to know appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Jet fuel prices fall to $2.39: How this affects your airline ticket prices and aviation industry trends
next post
How a second Trump presidency could impact electric vehicles and clean energy policies

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Pelosi addresses whether there’s ‘way back’ to Biden friendship after Dem pressure campaign to drop out

    August 11, 2024
  • US consumer sentiment plunges to lowest level in over a decade as trade tensions escalate

    April 11, 2025
  • Iranian-Americans and dissidents rallied against ‘murderous regime agents’ as Iran’s president addressed UNGA

    September 26, 2025
  • Oil executives bluntly criticize Trump tariffs and ‘drill, baby, drill’ mantra

    March 27, 2025
  • Delta Airlines cancellations and delays continue but worst of IT outage impact is over, CEO says

    July 25, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,250)
  • Investing (634)
  • Stock (935)

Latest Posts

  • Bitcoin’s Breakthrough at Davos: Crypto’s Future in Finance

    January 24, 2025
  • Supreme Court to hear case on LGBTQ-themed storybooks and parents’ right to opt out

    April 22, 2025
  • Novo Nordisk’s Wegovy approved by MHRA in the UK for cardiovascular prevention

    July 23, 2024

Recent Posts

  • Morgan Stanley cuts ON Semiconductor to Underweight: Should you sell?

    July 11, 2024
  • Secretary of State Rubio confirms becoming acting USAID chief

    February 3, 2025
  • 35 Democrats vote with GOP to block Biden rule allowing Newsom’s gas car ban

    May 1, 2025

Editor’s Pick

  • Trump announces more nominations, including Devin Nunes, Troy Edgar and Bill White

    December 15, 2024
  • Anthropic valued at over $61 billion in latest funding round

    March 3, 2025
  • VICTOR DAVIS HANSON: 10 bad takeaways from the Zelenskyy blow-up

    March 2, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock