Market Overview

Preview: Maxim Integrated Products's Earnings

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On Tuesday, October 27, Maxim Integrated Products (NASDAQ: MXIM) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Maxim Integrated Products will report earnings of $0.58 per share on revenue of $545.15 million. In the same quarter last year, Maxim Integrated Products reported earnings per share of $0.52 on sales of $533.04 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 11.54%. Revenue would be up 2.27% from the same quarter last year. Here is how the Maxim Integrated Products's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019
EPS Estimate 0.56 0.58 0.53 0.49
EPS Actual 0.58 0.61 0.56 0.52
Revenue Estimate 537.23 M 562.23 M 545.22 M 530.95 M
Revenue Actual 545.37 M 561.92 M 551.07 M 533.04 M

Stock Performance

Over the last 52-week period, shares are up 23.37%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Maxim Integrated Products is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings