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Maxim (MXIM) to Report Q3 Earnings: What's in the Offing?

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Maxim Integrated Products, Inc. MXIM is set to report third-quarter fiscal 2021 results on Apr 26. The original equipment manufacturer of semiconductor analog and mixed signal integrated circuits has a wide range of products that allow it to serve a diverse clientele.

For the to-be-reported quarter, the Zacks Consensus Estimate for earnings has remained stable at 75 cents per share over the past 30 days. This indicates an increase of 22.95% from the year-ago reported figure.

The consensus mark for revenues is pegged at $641.3 million, implying an increase of 14.13% from the year-ago reported figure.

Maxim Integrated Products, Inc. Price and EPS Surprise

Maxim Integrated Products, Inc. Price and EPS Surprise
Maxim Integrated Products, Inc. Price and EPS Surprise

Maxim Integrated Products, Inc. price-eps-surprise | Maxim Integrated Products, Inc. Quote

Performance in the Last Reported Quarter

In fiscal second-quarter 2021, earnings of 73 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The figure increased 30.4% year over year.

Net sales of $628.3 million also improved 14% from the year-ago period.

Let’s see how things have shaped up for this announcement.

In the fiscal second quarter, the Automotive end market generated 30% of total revenues. The figure increased 30% year over year. Also, the Industrial market generated approximately 33%, up 19% year over year.

The trend in automotive is expected to have continued in the to-be-reported quarter driven by increasing growth in infotainment content and factory automation products in areas of interface as well as power management.

The company has been witnessing increasing customer wins in this segment. Its expertise in Automotive Safety Integrity Levels is expected to have been a key catalyst in the quarter.

Revenues from the industrial segment are expected to have increased, primarily owing to an uptick in test equipment demand.

The Zacks Consensus Estimate for Automotive and industrial revenues is currently pegged at $191 million and 213 million, respectively. The consensus mark for revenues from the consumer segment is pegged at $125 million, while the same for the communications and data center segment is $113 million.

Moreover, Maxim’s exposure to consumer and communications markets may have been a risk. Also, macroeconomic concerns can impact the upcoming results.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Maxim for the to-be-reported 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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently has a Zacks Rank #3.

Stocks to Consider

Here are a few companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.

Waters Corporation WAT has an Earnings ESP of +2.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Verizon Communications Inc. VZ has an Earnings ESP of +0.41% and a Zacks Rank #3.

NXP Semiconductors N.V. NXPI has an Earnings ESP of +2.26% and a Zacks Rank #3.

Zacks Top 10 Stocks for 2021

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