Shares of RF, analog, digital, and mixed-signal integrated circuits provider MaxLinear, Inc. (MXL) have jumped 86.9% over the past year. MXL recently reported better-than-estimated performance for the fourth quarter on both top-line and bottom-line fronts.
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Revenue increased 27.3% year-over-year to $247.9 million, outperforming estimates by $3.2 million. Earnings per share at $0.86 came in ahead of expectations by $0.02.
Management noted that the growth in its top-line came from gains in connectivity, broadband, and infrastructure markets. Additionally, a shift in product mix towards higher-value products helped the company notch a gross margin of 61.7% during this period.
With these developments in mind, let us take a look at the changes in MXL’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, MaxLinear’s top risk category is Finance & Corporate, contributing 11 of the total 46 risks identified for the stock.
In its recent report, the company has added one key risk factor under the Macro & Political risk category. Compared to a sector average of 4 risk factors, MXL’s Macro & Political is at 5.
MXL noted that in recent times, relations between the U.S. and China have deteriorated. Developments in Hong Kong and a threat of the Chinese takeover of Taiwan have also impacted trade relations of other countries with China. The company has experienced a business impact from regulations in carrying out business and trade with China.
MXL highlighted that it cannot guarantee if similar disruptions will not occur in the future as well. Further, the loss of a key distributor or customer under similar circumstances could adversely affect MXL.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in MaxLinear by 148 thousand shares in the last quarter, indicating a positive hedge fund confidence signal in the stock based on activities of 4 hedge funds.
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