MaxLinear, Inc. (NASDAQ:MXL) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year
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It's been a good week for MaxLinear, Inc. (NASDAQ:MXL) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.9% to US$14.85. It was a pretty bad result overall; while revenues were in line with expectations at US$81m, statutory losses exploded to US$0.90 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for MaxLinear
After the latest results, the ten analysts covering MaxLinear are now predicting revenues of US$443.4m in 2025. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 67% to US$0.88. Before this earnings announcement, the analysts had been modelling revenues of US$445.2m and losses of US$0.87 per share in 2025.
As a result there was no major change to the consensus price target of US$19.78, implying that the business is trading roughly in line with expectations despite ongoing losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values MaxLinear at US$26.00 per share, while the most bearish prices it at US$12.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of MaxLinear'shistorical trends, as the 10.0% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 19% per year. So it's pretty clear that MaxLinear is expected to grow slower than similar companies in the same industry.