Investors in MaxLinear, Inc. (NASDAQ:MXL) had a good week, as its shares rose 4.9% to close at US$14.85 following the release of its third-quarter results. Revenues were in line with expectations, at US$81m, while statutory losses ballooned 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, MaxLinear's ten analysts are now forecasting revenues of US$443.4m in 2025. This would be a solid 13% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 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. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic MaxLinear analyst has a price target of US$26.00 per share, while the most pessimistic values 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 19% annually. So although MaxLinear is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on MaxLinear. Long-term earnings power is much more important than next year's profits. We have forecasts for MaxLinear going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with MaxLinear .
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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.
