Shares of MaxLinear experienced a decline in pre-market trading on Thursday following the release of their third-quarter financial results. The company reported a loss per share of 49 cents on revenue of $135.5 million, which fell short of some analysts’ expectations.
By 6:21 a.m. ET, the company’s shares had fallen by 20% to $14.69. This comes after the stock hit a 52-week low of $18.31 the day before and closed with a 5.5% loss at $18.40.
Despite the missed estimates, MaxLinear did meet expectations on an adjusted basis, reporting earnings per share of two cents for the period. The company’s third-quarter infrastructure revenue also saw growth, rising 1% sequentially and 40% year over year to reach $50 million.
Looking ahead to the fourth quarter, MaxLinear anticipates net revenue in the range of approximately $115 million to $135 million.
In response to the disappointing results, RothMKM downgraded their recommendation on MaxLinear stock from buy to neutral. They also lowered their price target on the company’s stock from $35 per share to $18 per share.
Investors will be closely watching how MaxLinear navigates the challenges in the upcoming quarter to determine the overall trajectory for the company’s future performance.