Maxim Integrated (MXIM) Q1 Earnings: What's In The Cards?
Zacks Investment Research | Oct 16, 2016 09:19PM ET
Maxim Integrated Products, Inc. (NASDAQ:MXIM) is set to report first-quarter 2017 results on Oct 20. Last quarter, the company posted a positive earnings surprise of 2.08%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Maxim Integrated is an original equipment manufacturer (OEM) of semiconductor analog and mixed signal integrated circuits (ICs). The company has a broad range of products that makes it possible to serve a diverse clientele. Maxim’s more than 70 product lines are primarily sold in the consumer, computing, industrial, automotive and communications markets and have extensive application 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 (KS:005930) is a big concern especially after the Galaxy Note 7 fiasco, which is likely to have an impact on Maxim’s net revenues.
For the fiscal first quarter, Maxim expects revenues in the range of $540 million to $580 million based on a quarter-end backlog of $363.0 million. Gross margin is expected in a range of 61%–63% on a GAAP basis and 63%–65% on an adjusted basis (excluding special items). Earnings per share are expected within 40–46 cents on a GAAP basis and 44–50 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 Original post
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