We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Maxim (MXIM) Q4 Earnings Match Estimates, Revenues Beat
Read MoreHide Full Article
Maxim Integrated Products, Inc. reported fourth-quarter fiscal 2020 adjusted earnings of 58 cents per share, in line with the Zacks Consensus Estimate. The bottom line was above the guided range of 43-57 cents per share.
The figure increased 3% year over year but declined 4.9% on a sequential basis.
Revenues of $545.4 million outpaced the Zacks Consensus Estimate by 0.04% and came above management’s guided range of $480-$550 million. However, the top line decreased 2% year over year and 3% on a sequential basis.
On Jul 13, 2020, Analog Devices announced plans to acquire Maxim for more than $17 billion. Reportedly, shareholders of Maxim are likely to get Analog Devices’ shares instead of cash payment.
End Market in Detail
Industrial: The company generated 36% of total revenues from this market during the reported quarter. Revenues in this market advanced 13% from the prior-year quarter, primarily owing to an uptick in test equipment demand.
Automotive: This market accounted for 22% of the company’s fiscal fourth-quarter revenues. Revenues were down 22% on a year-over-year basis.
Consumer: Maxim generated 16% of revenues from this market. Revenues in this market declined 30% year over year.
Communications and Data Center: Revenues from this market, which now includes computing, accounted for 26% of the total revenues. This reflects an improvement of 36% from the year-ago quarter.
Maxim Integrated Products, Inc. Price, Consensus and EPS Surprise
Non-GAAP gross margin was 67.4%, which expanded 260 basis points (bps) from the year-ago quarter.
Non-GAAP operating expenses of $183.1 million increased 1.6% year over year. Further, as a percentage of revenues, the figure expanded 150 bps from the prior-year quarter.
Operating margin came in at 32.6%, flat with the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 27, 2020, cash, cash equivalents and short-term investments were $1.6 billion, down from $1.7 billion on Mar 28, 2020.
Long-term debt was $994 million at fiscal fourth quarter-end compared with $993.7 million at fiscal third quarter-end.
During the quarter under review, cash flow from operations was $212 million, up from $209.8 million in the prior quarter. Further, the company utilized $16 million for capital expenditure during the fiscal fourth quarter.
Maxim spent $82 million in repurchasing shares and made a dividend payment of $128 million (48 cents per share).
Zacks Rank & Stocks to Consider
Maxim currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Dropbox (DBX - Free Report) , Everbridge and Analog Devices (ADI - Free Report) . While both Dropbox and Everbridge sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Dropbox and Everbridge are scheduled to report earnings on Aug 6. Analog Devices is set to release quarterly results on Aug 19.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Maxim (MXIM) Q4 Earnings Match Estimates, Revenues Beat
Maxim Integrated Products, Inc. reported fourth-quarter fiscal 2020 adjusted earnings of 58 cents per share, in line with the Zacks Consensus Estimate. The bottom line was above the guided range of 43-57 cents per share.
The figure increased 3% year over year but declined 4.9% on a sequential basis.
Revenues of $545.4 million outpaced the Zacks Consensus Estimate by 0.04% and came above management’s guided range of $480-$550 million. However, the top line decreased 2% year over year and 3% on a sequential basis.
On Jul 13, 2020, Analog Devices announced plans to acquire Maxim for more than $17 billion. Reportedly, shareholders of Maxim are likely to get Analog Devices’ shares instead of cash payment.
End Market in Detail
Industrial: The company generated 36% of total revenues from this market during the reported quarter. Revenues in this market advanced 13% from the prior-year quarter, primarily owing to an uptick in test equipment demand.
Automotive: This market accounted for 22% of the company’s fiscal fourth-quarter revenues. Revenues were down 22% on a year-over-year basis.
Consumer: Maxim generated 16% of revenues from this market. Revenues in this market declined 30% year over year.
Communications and Data Center: Revenues from this market, which now includes computing, accounted for 26% of the total revenues. This reflects an improvement of 36% from the year-ago quarter.
Maxim Integrated Products, Inc. Price, Consensus and EPS Surprise
Maxim Integrated Products, Inc. price-consensus-eps-surprise-chart | Maxim Integrated Products, Inc. Quote
Operating Details
Non-GAAP gross margin was 67.4%, which expanded 260 basis points (bps) from the year-ago quarter.
Non-GAAP operating expenses of $183.1 million increased 1.6% year over year. Further, as a percentage of revenues, the figure expanded 150 bps from the prior-year quarter.
Operating margin came in at 32.6%, flat with the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 27, 2020, cash, cash equivalents and short-term investments were $1.6 billion, down from $1.7 billion on Mar 28, 2020.
Long-term debt was $994 million at fiscal fourth quarter-end compared with $993.7 million at fiscal third quarter-end.
During the quarter under review, cash flow from operations was $212 million, up from $209.8 million in the prior quarter. Further, the company utilized $16 million for capital expenditure during the fiscal fourth quarter.
Maxim spent $82 million in repurchasing shares and made a dividend payment of $128 million (48 cents per share).
Zacks Rank & Stocks to Consider
Maxim currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Dropbox (DBX - Free Report) , Everbridge and Analog Devices (ADI - Free Report) . While both Dropbox and Everbridge sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Dropbox and Everbridge are scheduled to report earnings on Aug 6. Analog Devices is set to release quarterly results on Aug 19.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>