MaxLinear's stock experienced a significant 8.77% decline in after-hours trading on Thursday, following the release of its fourth-quarter financial results.
The sharp drop came after the company reported a GAAP net loss of $14.9 million for the quarter, which disappointed investors despite revenue of $136.44 million that exceeded analyst estimates and represented 48% year-over-year growth. While non-GAAP earnings showed improvement and revenue performance was strong, the reported net loss appears to have driven negative market sentiment.
The company also provided first-quarter revenue guidance in the range of $130 million to $140 million. Market reaction suggests concerns about profitability despite the revenue beat, with the stock currently trading at 26 times next 12-month earnings according to analyst data.