Maxim Integrated Products
) is set to report first quarter 2014 results on Oct 24. Last
quarter it posted a 6.38% negative surprise. Let's see how things
are shaping up for this announcement.
Growth Factors this Past Quarter
The company's revenues missed management's guided range of
$610-$640 million in the fourth quarter of 2013, but were up both
sequentially and on a year-over-year basis. The increase was
driven by strong demand in the automotive, smart meter and
medical end markets. However, gross margin declined due to lower
factory utilization and higher inventory reserves.
For the first quarter of 2014, Maxim expects to generate GAAP EPS
of 34 cents to 38 cents and adjusted EPS of 37 cents to 41 cents.
Management expects the introduction of highly integrated
solutions across its broad range of technologies to help drive
network performance going forward.
Our proven model does not conclusively show that Maxim is likely
to beat earnings because it does not have the right combination
of two key ingredients.
Zacks ESP: Both the Most Accurate estimate and the Zacks
Consensus Estimate stand at 48 cents. Hence, the difference is
Zacks Rank #2 (Buy): Note that stocks with Zacks Ranks of #1, #2
and #3 have a significantly higher chance of beating earnings.
However, the combination of Maxim's Zacks Rank # 2 (Buy) and 0.0%
makes surprise prediction difficult. We caution against stocks
with Zacks Ranks #4 and #5 (Sell rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
), Earnings ESP of +2.84% and a Zacks Rank #1 (Strong Buy).
Asml Holding NV
), Earnings ESP of +4.17% and Zacks Rank #3 (Hold).
ASML HOLDING NV (ASML): Free Stock Analysis
JARDEN CORP (JAH): Free Stock Analysis Report
MAXIM INTG PDTS (MXIM): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
To read this article on Zacks.com click here.
), Earnings ESP of +2.00% and a Zacks Rank #1 (Strong Buy).