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Maxim (MXIM) to Report Q3 Earnings: What's in the Cards?
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Maxim Integrated Products, Inc. is set to report third-quarter fiscal 2017 results on Apr 20.
Last quarter, the company posted a positive earnings surprise of 6.98%, with an average positive earnings surprise of 2.80%.
However, as far as share price movement is concerned, over the past one year, the stock has returned only 22.9% compared with the Zacks Semi-Analog & Mixed industry’s gain of 31.8%.
Factors to Consider
Maxim Integrated is an original equipment manufacturer (OEM) of semiconductor analog and mixed signal integrated circuits (ICs). The company has a wide range of products that makes it possible to serve a diverse clientele. Maxim’s product lines are primarily sold in the consumer, computing, industrial, automotive and communications markets. Its products are also extensively applied in consumer goods like cordless phones, digital cameras and PDAs, data processing, industrial products, instrumentation products, medical instruments, and various communications gear and networking equipment.
Also, Maxim reorganized its business structure to distribute R&D, and sales and marketing resources more efficiently between business units, speed up decision-making, improve interaction and collaboration between business units, and quickly process customer feedback for implementation.
However, the concentration of its mobility revenues at Samsung is a big concern, which is likely to impact Maxim’s net revenues.
For the fiscal third quarter, Maxim expects revenues in the range of $555–$595 million based on a quarter-end backlog of $388 million. Gross margin is expected in the range of 61–63% (excluding special items). Earnings per share are expected within 49–55 cents on an adjusted basis.
Earnings Whispers?
Our proven model does not conclusively show that Maxim will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Maxim has an Earnings ESP of 0.00%. Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 52 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Maxim’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Maxim Integrated Products, Inc. Price and EPS Surprise
Here are some companies, which you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
KLA-Tencor Corporation (KLAC - Free Report) , with an Earnings ESP of +2.60% and a Zacks Rank #2.
Fortive Corporation (FTV - Free Report) with an Earnings ESP of +1.75% and a Zacks Rank #2.
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Maxim (MXIM) to Report Q3 Earnings: What's in the Cards?
Maxim Integrated Products, Inc. is set to report third-quarter fiscal 2017 results on Apr 20.
Last quarter, the company posted a positive earnings surprise of 6.98%, with an average positive earnings surprise of 2.80%.
However, as far as share price movement is concerned, over the past one year, the stock has returned only 22.9% compared with the Zacks Semi-Analog & Mixed industry’s gain of 31.8%.
Factors to Consider
Maxim Integrated is an original equipment manufacturer (OEM) of semiconductor analog and mixed signal integrated circuits (ICs). The company has a wide range of products that makes it possible to serve a diverse clientele. Maxim’s product lines are primarily sold in the consumer, computing, industrial, automotive and communications markets. Its products are also extensively applied in consumer goods like cordless phones, digital cameras and PDAs, data processing, industrial products, instrumentation products, medical instruments, and various communications gear and networking equipment.
Also, Maxim reorganized its business structure to distribute R&D, and sales and marketing resources more efficiently between business units, speed up decision-making, improve interaction and collaboration between business units, and quickly process customer feedback for implementation.
However, the concentration of its mobility revenues at Samsung is a big concern, which is likely to impact Maxim’s net revenues.
For the fiscal third quarter, Maxim expects revenues in the range of $555–$595 million based on a quarter-end backlog of $388 million. Gross margin is expected in the range of 61–63% (excluding special items). Earnings per share are expected within 49–55 cents on an adjusted basis.
Earnings Whispers?
Our proven model does not conclusively show that Maxim will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Maxim has an Earnings ESP of 0.00%. Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 52 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Maxim’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Maxim Integrated Products, Inc. Price and EPS Surprise
Maxim Integrated Products, Inc. Price and EPS Surprise | Maxim Integrated Products, Inc. Quote
Stocks to Consider
Here are some companies, which you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Applied Materials, Inc. (AMAT - Free Report) , with an Earnings ESP of +1.32% and Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
KLA-Tencor Corporation (KLAC - Free Report) , with an Earnings ESP of +2.60% and a Zacks Rank #2.
Fortive Corporation (FTV - Free Report) with an Earnings ESP of +1.75% and a Zacks Rank #2.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>