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.
Will Maxim's (MXIM) Q2 Earnings Gain from Auto Strength?
Read MoreHide Full Article
Maxim Integrated Products, Inc. is set to report second-quarter fiscal 2018 results on Jan 25. The original equipment manufacturer (OEM) of semiconductor analog and mixed signal integrated circuits (ICs) has a wide range of products that allows it to serve a diverse clientele.
Last quarter, the company delivered a positive earnings surprise of 9.1%, the average beat being 6.34%.
The company’s shares have charted a solid trajectory in recent times, increasing 36.7% over the past year, outperforming the industry’s growth of 31.9%.
Strength in Industrial & Auto End Markets to Drive Revenues
In the fiscal first quarter, Automotive end market generated 20% of revenues, increasing year over year. Also, Industrial market generated approximately 28%, up year over year. Increasing growth in infotainment content and factory automation products in the areas of interface and power management should continue to drive revenues in the upcoming quarter. The Zacks Consensus Estimate for revenues is currently pegged at $619.9 million.
Customer Concentration a Major Hurdle
However, the concentration of Maxim’s mobility revenues at Samsung is a major concern. Samsung’s projections and announcements, especially those related to its high-end models, where Maxim has greater exposure, could have a significant impact on Maxim’s performance.
Moreover, Maxim’s exposure to the consumer and communications markets increases risks.
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 -0.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Maxim has a Zacks Rank #5 (Strong Sell). 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 a few 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.
Western Digital Corp. (WDC - Free Report) , with an Earnings ESP of +0.83% and a Zacks Rank #2.
Advanced Energy Industries, Inc. (AEIS - Free Report) with an Earnings ESP of +0.41% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Will Maxim's (MXIM) Q2 Earnings Gain from Auto Strength?
Maxim Integrated Products, Inc. is set to report second-quarter fiscal 2018 results on Jan 25. The original equipment manufacturer (OEM) of semiconductor analog and mixed signal integrated circuits (ICs) has a wide range of products that allows it to serve a diverse clientele.
Last quarter, the company delivered a positive earnings surprise of 9.1%, the average beat being 6.34%.
The company’s shares have charted a solid trajectory in recent times, increasing 36.7% over the past year, outperforming the industry’s growth of 31.9%.
Strength in Industrial & Auto End Markets to Drive Revenues
In the fiscal first quarter, Automotive end market generated 20% of revenues, increasing year over year. Also, Industrial market generated approximately 28%, up year over year. Increasing growth in infotainment content and factory automation products in the areas of interface and power management should continue to drive revenues in the upcoming quarter. The Zacks Consensus Estimate for revenues is currently pegged at $619.9 million.
Customer Concentration a Major Hurdle
However, the concentration of Maxim’s mobility revenues at Samsung is a major concern. Samsung’s projections and announcements, especially those related to its high-end models, where Maxim has greater exposure, could have a significant impact on Maxim’s performance.
Moreover, Maxim’s exposure to the consumer and communications markets increases risks.
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 -0.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Maxim has a Zacks Rank #5 (Strong Sell). 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 a few 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 +0.57% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Western Digital Corp. (WDC - Free Report) , with an Earnings ESP of +0.83% and a Zacks Rank #2.
Advanced Energy Industries, Inc. (AEIS - Free Report) with an Earnings ESP of +0.41% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>