MaxLinear (MXL) Stock Gains on Earnings Beat

MaxLinear (MXL) shares are higher after the company beat analysts' estimates for earnings in the third quarter.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of MaxLinear (MXL) - Get Report were gaining 25.3% to $16.45 with heavy trading volume on Wednesday after the chipmaker beat analysts' estimates for earnings in the third quarter.

After the market closed on Tuesday, MaxLinear reported earnings of 40 cents a share for the third quarter, above analysts' estimates of 34 cents a share for the quarter. Revenue grew 192.5% year over year to $95.19 million for the quarter, compared to analysts' estimates of $94.65 million.

"We are pleased to announce third quarter 2015 revenue of $95.2 million, our first quarter reflecting a full-quarter of contribution from the acquisition of Entropic Communications," Chairman and CEO Kishore Seendripu, Ph.D., said in a statement. "The third quarter revenue represents an increase of 34 percent sequentially, which was slightly above the midpoint of our upwardly revised prior guidance."

Looking to the fourth quarter, MaxLinear said it expects to report revenue of $95 million to $100 million, compared to analysts' estimates of $94.5 million for the quarter.

About 4.7 million shares of MaxLinear were traded by 12:59 p.m. Wednesday, above the company's average trading volume of about 751,000 shares a day.

TheStreet Ratings team rates MAXLINEAR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate MAXLINEAR INC (MXL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: MXL

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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