Maxim Integrated Products Earnings: Here’s Why Investors are Ambivalent Now

Maxim Integrated Products Inc. (NASDAQ:MXIM) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Maxim Integrated Products Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.38% to $0.44 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Rose 0.54% to $608.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Maxim Integrated Products Inc. reported adjusted EPS income of $0.44 per share. By that measure, the company missed the mean analyst estimate of $0.51. It missed the average revenue estimate of $651.93 million.

Quoting Management: Tunc Doluca, President and Chief Executive Officer, commented, “We are disappointed by the weakness in end market demand for our smartphone products which resulted in revenue and earnings below expectations. This was partially offset by revenue growth in 22 of the 24 market segments that we address. We continue to generate strong profits and cash flow, and we are confident in our strategy and long-term business model as demonstrated by the increase in our dividend and share repurchases.”

Key Stats (on next page)…

Revenue increased 0.55% from $604.88 million in the previous quarter. EPS increased 0% from $0.44 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.5. For the current year, the average estimate has moved down from a profit of $2.08 to a profit of $2.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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