Shareholders will be ecstatic, with their stake up 22% over the past week following MACOM Technology Solutions Holdings, Inc.'s (NASDAQ:MTSI) latest annual results. It was a credible result overall, with revenues of US$730m and statutory earnings per share of US$1.04 both in line with analyst estimates, showing that MACOM Technology Solutions Holdings is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

After the latest results, the 13 analysts covering MACOM Technology Solutions Holdings are now predicting revenues of US$907.8m in 2025. If met, this would reflect a substantial 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 97% to US$2.09. In the lead-up to this report, the analysts had been modelling revenues of US$866.5m and earnings per share (EPS) of US$1.90 in 2025. So it seems there's been a definite increase in optimism about MACOM Technology Solutions Holdings' future following the latest results, with a nice gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for MACOM Technology Solutions Holdings 24% to US$146on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on MACOM Technology Solutions Holdings, with the most bullish analyst valuing it at US$160 and the most bearish at US$105 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting MACOM Technology Solutions Holdings' growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MACOM Technology Solutions Holdings is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards MACOM Technology Solutions Holdings following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for MACOM Technology Solutions Holdings going out to 2027, and you can see them free on our platform here.

We also provide an overview of the MACOM Technology Solutions Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.