LONDON, UK / ACCESSWIRE / July 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Maxim Integrated Products, Inc. (NASDAQ: MXIM) ("MXIM"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MXIM, following the Company's announcement of its financial on July 20, 2017, results for the fourth quarter fiscal 2017. The Company's operating income increased 62.9% on a y-o-y basis, while revenue grew 6.3%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For three months ended June 24, 2017, MXIM's net revenue increased 6.3% on a y-o-y basis to $602.01 million. The net revenue was below analysts' expectations of $608.3 million. During Q4 FY17, the Company's 29% revenue came from industrial market, 25% from the consumer market, 21% from communications and data center market, 20% from automotive market, and 5% from computing market.
During Q4 FY17, MXIM's gross profit increased 410 basis points on a y-o-y basis to 65.4% of sales. For the reported quarter, the Company's adjusted gross profit increased 310 basis points on a y-o-y basis to 67.2% of sales. The increase was mainly due to strong operational execution on manufacturing transformation and the transition to sell-in revenue accounting.
During Q4 FY17, MXIM's gross profit increased 410 basis points on a y-o-y basis to 65.4% of sales. For the reported quarter, the Company's adjusted gross profit increased 310 basis points on a y-o-y basis to 67.2% of sales. The increase was mainly due to strong operational execution on manufacturing transformation and the transition to sell-in revenue accounting.
During Q4 FY17, MXIM's operating income increased 62.9% on a y-o-y basis to $199.38 million. For the reported quarter, the Company's operating margin increased 440 basis points on a y-o-y basis to 35.8%. The improvement in operating margin was driven by manufacturing transformation and focused R&D investment strategy.
During Q4 FY17, MXIM's net income increased 76.6% on a y-o-y basis to $163.31 million. For the reported quarter, the Company's diluted EPS increased 78.1% on a y-o-y basis to $0.57. During Q4 FY17, MXIM's adjusted EPS increased 29% on a y-o-y basis to $0.63. The adjusted diluted EPS surpassed analysts' expectations of $0.62.
During Q4 FY17, MXIM's Board of Directors approved a 9% hike in quarterly cash dividend to $0.36 per share payable on September 14, 2017, to stockholders of record on August 31, 2017. The Company also approved share repurchase authorization of $1 billion.
Balance Sheet
As on June 24, 2017, MXIM's cash and cash equivalents increased 6.6% to $2.25 billion from $2.11 billion in Q4 FY16. During Q4 FY17, the Company's inventories increased 8.5% to $247.24 million from $227.93 million in the same quarter last year.
During Q4 FY17, MXIM's cash flow from operations decreased 6.7% to $236.93 million from $254.07 million in Q4 FY16. For the reported quarter, the Company's trailing twelve months free cash flow increased 6% to $784 million from $738 million in Q4 FY16.
Outlook
For Q1 FY18, MXIM is expecting revenue to be in the range of $555 million-$595 million. The Company estimates gross margin to be in the range of 63%-66% for the September 2017 quarter and expects adjusted gross margin to be in the range of 65%-68%. For Q1 FY18, MXIM is expecting EPS to be in the range of $0.48-$0.54 and adjusted EPS to be in the range of $0.52-$0.58.
Stock Performance
Maxim Integrated Products' share price finished yesterday's trading session at $44.62, slightly up 0.22%. A total volume of 3.40 million shares has exchanged hands, which was higher than the 3-month average volume of 2.17 million shares. The Company's stock price surged 6.16% in the past six months and 14.94% in the previous twelve months. Additionally, the stock rallied 15.69% since the start of the year. Shares of the Company have a PE ratio of 25.70 and have a dividend yield of 2.96%. The stock currently has a market cap of $13.37 billion.
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