Maxlinear shares tumble on weak revenue forecast

MaxLinear

26/10/2023 10:42

** Shares of Maxlinear  MXL.O  tumble 21.2% to $14.5
premarket after the chipmaker issues downbeat revenue forecast
    ** Company sees Q4 revenue of $115 mln-$135 mln vs analysts'
est of $146.1 mln - LSEG data
    ** MXL's Q3 revenue falls 53% to $135.5 mln, also missing
analyst est of $139.2 mln
    ** Roth MKM downgrades stock to "neutral" from "buy"
    ** MXL continues to see weaker demand and is still seeing
inventory digestion issues in key markets. "We no longer expect
revenue to stabilize in 2024 (and in fact we now believe it
could decline 9% y/y) and a return to positive y/y growth is not
anticipated until 3Q24" - brokerage
    ** Separately, company says it initiated job cuts in October
    ** Stock closed at an over 3-year low on Wednesday, down
about 46% YTD

 (Reporting by Sruthi Shankar in Bengaluru)
 ((sruthi.shankar@thomsonreuters.com;))