Maxim Integrated Products Beats on EPS, but GAAP Results Lag
Maxim Integrated Products (NAS: MXIM) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Maxim Integrated Products met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Maxim Integrated Products reported revenue of $571.2 million. The 26 analysts polled by S&P Capital IQ predicted sales of $571.2 million on the same basis. GAAP reported sales were 5.9% lower than the prior-year quarter's $606.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share. GAAP EPS of $0.18 for Q3 were 60% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.7%, 270 basis points worse than the prior-year quarter. Operating margin was 21.0%, 600 basis points worse than the prior-year quarter. Net margin was 9.5%, 1,300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $600.9 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 284 members out of 310 rating the stock outperform, and 26 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give Maxim Integrated Products a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Maxim Integrated Products is outperform, with an average price target of $29.44.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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