Maxim (MXIM) Beats Q4 Earnings Estimates, Misses On Revenues
Zacks Investment Research | Jul 20, 2017 10:07PM ET
Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported fourth-quarter fiscal 2017 adjusted earnings of 63 cents per share, ahead of the Zacks Consensus Estimate by a penny. Also, earnings were up 28.1% from the year-ago quarter.
Following the results, share price was up 1.55%, driven by strong growth in automotive and industrial markets and greater-than-expected profitability.
Also, shares of Maxim have returned 24.03% year to date, outperforming the industry ’s gain of 19.21%.
Revenue
Revenues of $602 million were up 3.6% sequentially and 6.3% year over year. The increase was driven by major strength in the automotive and industrial end markets.
The top line was within the company’s guidance range of $590–$630 million and came below the Zacks Consensus Estimate of $608 million.
Revenues by End Market
The revenue mix in terms of major markets is discussed below.
Industrial end market remained the largest revenue contributor, accounting for approximately 29%. The segment’s revenues were up sequentially and year over year. The increase was driven primarily by factory automation products in the areas of interface and power management.
Consumer, Maxim’s second-largest segment, generated 25% of the revenues, flat sequentially due to lower-than-expected shipments, partially offset by improved diversification and wearables, gaming and peripherals.
The Communications and Data Center end market accounted for 21% of revenues, flat sequentially but increasing from the year-ago quarter. The year-over-year increase was driven by growth in data center with strong customer adoption of 100G optical products used in high-speed data center applications. The company also witnessed sequential growth in the communications infrastructure as well.
The Automotive end market also generated 20% of revenues, increasing sequentially. The increase was driven by growth in infotainment content. The power management products for infotainment applications helped in strengthening customer relationships in automotive and earning new design wins.
The Computing business contributed the remaining 5%.
Margins
The non-GAAP gross margin was 67.2%, up 201 basis points (bps) sequentially and 312 bps year over year. The increase was due to higher revenues and a favorable mix.
Non-GAAP operating expenses of $189.1 million increased 1.1% sequentially and 2.3% year over year. The increase resulted from higher employee profit sharing.
Pro forma operating margin was 35.8%, up 279 bps sequentially and 437 bps year over year.
Net Income
GAAP net income was $163.3 million compared with $140.2 million in the last quarter and $92.3 million a year ago.
Pro forma net income was $179.9 million compared with $159.8 million in the last quarter and $140.5 million a year ago. Our pro forma calculation excludes restructuring, intangibles amortization, asset impairments and other one-time charges on a tax-adjusted basis.
Get The News You Want
Maxim Integrated Products, Inc. Price, Consensus and EPS Surprise
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.