Company’s revenue decline prompts significant drop in stock price

  • MaxLinear shares tumble 12% after guiding for lower 1Q revenue
  • Revenue fell 57% from a year ago to $125.4 million in the fourth quarter
  • Company expects revenue of $85 million to $105 million in the first quarter
  • MaxLinear posted a loss of $38.5 million in the quarter ended Dec. 31

Shares of MaxLinear fell 12% after the company announced a forecasted decline in revenue for the first quarter. In the fourth quarter, revenue dropped 57% from the previous year to $125.4 million, slightly exceeding analysts’ expectations. For the first quarter, the company expects revenue to be between $85 million and $105 million, significantly lower than the $248.4 million reported in the same period last year. MaxLinear also reported a loss of $38.5 million in the quarter ended December 31, compared to a profit of $31.1 million in the previous year.

Public Companies: MaxLinear (N/A)
Private Companies:
Key People:

Factuality Level: 8
Justification: The article provides specific information about MaxLinear’s decline in revenue and stock performance, including the percentage drop and the actual revenue figures. It also includes analyst forecasts and compares them to the company’s actual results. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. It is a straightforward report on the company’s financial performance.

Noise Level: 3
Justification: The article provides relevant information about MaxLinear’s decline in revenue and stock performance. It includes data on the company’s fourth-quarter revenue, first-quarter revenue forecast, and financial results. The article also mentions analysts’ expectations. However, it lacks in-depth analysis, antifragility considerations, and accountability of powerful people. It does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: MaxLinear

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the decline in revenue and stock price of MaxLinear. However, there is no mention of an extreme event.

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