Maxim Integrated Products, Inc.NASDAQ
Without A Bigger Discount, Maxim Not So Interesting Today
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Nov. 29, 2:33 PM
- Maxim Integrated Products (NASDAQ:MXIM) had declared $0.33/share quarterly dividend, in line with previous.
- Payable Dec. 15; for shareholders of record Dec. 1; ex-div Nov. 29.
Mon, Oct. 24, 4:17 PM
- Analysts Mitch Steves and Amit Daryanani rate Microsemi (NASDAQ:MSCC) a "Top Pick" with a $48 target (current price $40.36).
- In considering the semiconductor sector on broad terms, the analysts believe mid-cap companies such as Microsemi present attractive opportunities to larger names on margin profiles and valuations. For Microsemi specifically, Texas Instruments (NYSE:TXN), Broadcom (NASDAQ:AVGO) and Maxim Integrated Products (NASDAQ:MXIM) are offered as potential acquirers, with Texas Instruments making the "most sense."
- Should Microsemi's leverage reduce from a current 3.7x level toward a 3x level, the analysts project the company at that point to firmly represent an attractive target.
Sat, Oct. 22, 10:42 AM
- While Tesla Motors (NASDAQ:TSLA) may have grabbed some headlines this week for its ambitious goals with autonomous driving (SAE level 5), the technology is being widely discussed across industries as a potential future reality.
- At a real estate conference in New York this week, a panel member called autonomous vehicles the biggest tech news concerning real estate in the last ten years. Some see a future reversal of urbanization trends in a development that could have significant investment implications.
- City planners and architects are already thinking of next-gen design. A paper titled "Beyond Google's Cute Car" (.pdf version) is a good example of how cities are being reimagined.
- Then there's this from the man who designed the 2015 Ford Mustang. "The next 10 years in this business is going to be the biggest change and challenge since the turn of the last century when cars took over for horses," said Ford design chief Moray Callum. Ford (NYSE:F) aims to have a high-volume, fully autonomous SAE level 4-capable vehicle in commercial operation in 2021.
- Self-driving car development is a topic of discussion on FedEx (NYSE:FDX), UPS (NYSE:UPS), Lyft (Private:LYFT), Uber (Private:UBER), Hertz Global (NYSE:HTZ), Google (GOOGL, GOOG), Avis Budget (NASDAQ:CAR), Domino's Pizza (NYSE:DPZ) and Nvidia (NASDAQ:NVDA). Earnings season is just heating up, but a host of companies -- including OTCPK:TMOAF, OTCPK:DDAIF, OTCPK:VOLVY, MXIM, CPRT, WBC, GNTX and XLNX -- have already talked up the trend on their conference calls. GM reports earnings this week and will update on any self-driving Chevy Bolt plans.
- Looking ahead, insurance companies, chipmakers, truckers and cybersecurity firms (NYSEARCA:HACK) will be firmly in the self-driving conversation.
- So who has a profitable trade idea off of the evolution of cars?
Thu, Oct. 20, 4:05 PM
Wed, Oct. 19, 5:35 PM
Mon, Sep. 12, 8:54 PM
- Renesas Electronics (OTCPK:RNECF) agrees to acquire Intersil (NASDAQ:ISIL) for $22.50/share, a 14% premium to today's closing price, or ~$3.2B; ISIL +7.3% AH.
- ISIL, whose chips are used in industrial, mobile and infrastructure applications, would expand Renesas' portfolio in analog chips and strengthen Renesas' nearly 40% share of the global market for microcontroller chips used in automobiles.
- Renesas anticipates that near- and long-term revenue expansion opportunities combined with modest anticipated cost efficiencies associated with greater scale eventually will generate synergies of $170M/year.
- Maxim Integrated Products (NASDAQ:MXIM) also was interested in purchasing ISIL, Reuters reports.
Wed, Aug. 31, 1:01 PM
- An agreement could reportedly be announced as soon as next week, though sources note nothing is final and that Maxim Integrated Products (MXIM -0.1%) may still disrupt a deal.
- Japan's Renesas Electronics (OTCPK:RNECF) confirmed last week it was discussing options with Intersil (ISIL +10.4%) regarding a takeover that could be valued at $3B.
Wed, Jul. 27, 12:59 PM
- In the wake of yesterday's Linear Technology and Analog Devices deal, Cowen and Company discusses a case for Texas Instruments (TXN -1.1%) to pursue Maxim Integrated Devices (MXIM +0.9%).
- Cowen and Company analyst Timothy Arcuri floats a $55-$60 per Maxim Integrated Devices share range deal ($41.26 current price).
- He cites low rates and potentially higher returns resulting from a deal compared to Texas Instruments' preference to buy back stock at an approximately 5% free cash flow yield.
- Texas Instruments was previously interested in pursuing a takeover of Maxim Integrated Devices last October, but by January had decided against it.
- Cowen and Company maintains a Market perform rating on Texas Instruments, which is up more than 6% since reporting Q2 results on Monday. Maxim Integrated devices is up more than 9% since reporting its quarter last Thursday.
Mon, Jul. 25, 5:37 PM
Thu, Jul. 21, 4:03 PM
Wed, Jul. 20, 5:35 PM
Thu, Apr. 21, 4:04 PM
- Maxim Integrated Products (NASDAQ:MXIM): FQ3 EPS of $0.41 misses by $0.01.
- Revenue of $555.25M (-3.8% Y/Y) in-line.
Wed, Apr. 20, 5:35 PM
Tue, Apr. 19, 10:50 AM
- Amid a weak market in both PCs and handsets, Citigroup is expressing caution on semiconductor stocks that it says could decline 20% in the next few months, while still seeing glimmers of light.
- The automotive end market should be strongest, analyst Christopher Danely says, leading him to sector favorites Microchip Technology (MCHP +0.1%) and ON Semiconductor (ON +0.5%), along with Linear Technology (LLTC -0.6%) -- each of which has a heavy component of sales in automotive (in ON Semi's case, 33% of calendar-year sales).
- Ahead of today's earnings, Intel (INTC -0.1%) gets a note of caution. Citi's Jim Suva says PCs will decline 6% this year, worse than Intel's forecast.
- Meanwhile, strong Samsung shipments are good for Maxim Integrated Products (MXIM -1.1%), but an overall weak handset market plays to Apple's supply chain. Together, PCs and handsets make up some 50% of the semicondutor market.
- Now read Intel Looks Vulnerable »
Thu, Jan. 21, 4:43 PM
- Though it beat FQ2 sales estimates and posted in-line EPS, Maxim (NASDAQ:MXIM) is guiding for FQ3 revenue of $535M-$575M and EPS of $0.38-$0.44 (midpoints of $555M and $0.41) vs. a consensus of $568.5M and $0.46. But with shares having gone into earnings less than $2 above a 52-week low of $29.47, markets are giving the company a pass for now.
- CEO Tunc Doluca: "Our second quarter financial performance was in line with our expectations, and we achieved several milestones in our $180 million cost reduction plan. In our March quarter, we expect continued growth in Automotive, a sequential increase in our Communications & Data Center and Consumer businesses and a seasonal uptick in Industrial." Samsung-related weakness has often been a headwind for Maxim over the last two years - the Galaxy S7 is expected to be unveiled at the Mobile World Congress (runs from Feb. 22-25).
- Financials: Weighing on FQ2 EPS: Non-GAAP gross margin was 60.5%, -110 bps Q/Q and +20 bps Y/Y, and towards the low end of a 60%-63% guidance range. FQ3 GM guidance is also at 60%-63%. Boosting EPS: Non-GAAP operating expenses fell 13% Y/Y to $186.7M, and $23M was spent on buybacks. Maxim ended FQ2 with $1.77B in cash, and $1B in long-term debt.
- Shares have risen to $32.25 after hours.
- FQ2 results, earnings release
Thu, Jan. 21, 4:04 PM
- Maxim Integrated Products (NASDAQ:MXIM): FQ2 EPS of $0.32 in-line.
- Revenue of $510.83M (-9.9% Y/Y) beats by $5.75M.