MaxLinear's stock experienced a significant after-hours plunge of 12.92% following the release of its fourth-quarter financial results.
The sharp decline came after the company reported a GAAP net loss of $14.9 million for the quarter, despite revenue of $136.44 million that beat analyst estimates and represented 48% year-over-year growth. While non-GAAP earnings showed improvement, the reported net loss appears to have disappointed investors. The company also provided first-quarter revenue guidance in the range of $130 million to $140 million.
Market reaction suggests concerns about profitability despite strong revenue performance, with the stock trading at 26 times next 12-month earnings. Analyst ratings currently average "hold" with a median price target below recent trading levels.
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