Stock Monitor: Microchip Technology Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 17, 2018 / If you want access to our free earnings report on Maxim Integrated Products, Inc. (NASDAQ: MXIM) ("Maxim"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MXIM. Maxim reported its third quarter and fiscal 2018 operating and financial results on April 26, 2018. The chipmaker outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Microchip Technology Incorporated (NASDAQ: MCHP), which also belongs to the Technology sector as the Company Maxim Integrated Products. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Maxim Integrated Products most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Maxim reported net revenue of $648.6 million for its third quarter of fiscal 2018 ended March 31, 2018, reflecting a 12% increase from Q3 FY17 revenue of $581.2 million. The Company's reported numbers beat analysts' expectations of $640.6 million

During Q3 FY18, Maxim's gross margin, excluding special items, was 67.2%, was approximately 200 basis points higher than 65.2% in Q3 FY17, driven by strong operational execution. The Company's operating expenses, excluding special items, were $195.7 million, compared to $187.2 million. Maxim's special items in the reported quarter operating expenses included acquisition-related charges and restructuring charges.

For Q3 FY18, Maxim's GAAP operating income, excluding special items, was $240 million. The Company's operating margin at 37.1% of revenue was up 410 basis points from the year earlier quarter. This improvement in operating margin was driven by revenue growth, Maxim's manufacturing transformation and focused R&D investment strategy.

Q3 FY18, Maxim's GAAP earnings were $193.6 million, or $0.68 per diluted share, compared to $140.2 million, or $0.49 per diluted share, in Q3 FY17. The results were affected by pre-tax special items which primarily consisted of $13 million in charges related to acquisitions and $3 million in charges related to restructuring activities.

For Q3 FY18, Maxim's GAAP earnings, excluding special items was $0.73 per diluted share compared to GAAP earnings of $0.56 per diluted share in Q3 FY17. The Company's earnings surpassed Wall Street's estimates of $0.69 per share.

Cash Matters

At the end of the third quarter of fiscal 2018, Maxim's total cash, cash equivalents and short-term investments were $2.72 billion, a decrease of $99 million from the prior quarter. The Company's trailing twelve months free cash flow was $843 million.

For Q3 FY18, Maxim's inventory days ended at 117, down 9 days from Q2 FY18. The Company's inventory dollars were up 5% from the prior quarter.

For capital return, Maxim's share repurchases totaled $128 million in Q3 FY18, as the Company bought back approximately 2.1 million shares. This was up significantly from the prior quarter as Maxim increased its return of capital policy from 80% to 100% of free cash flow.

Business Outlook

Maxim's 90-day backlog at the beginning of Q4 FY18 was $436 million.

For the fourth quarter 2018, Maxim is forecasting revenue in the range of $610 million to $650 million, and gross margin of 64% to 66% GAAP, while 66% to 68% excluding special items. Maxim is projecting earnings in the range of $0.62 to $0.68 per share. The Company is estimating earnings in the band of $0.67 to $0.73 excluding special items.

Stock Performance Snapshot

May 16, 2018 - At Wednesday's closing bell, Maxim Integrated Products' stock rose 1.32%, ending the trading session at $58.49.

Volume traded for the day: 1.78 million shares.

Stock performance in the previous six-month period ? up 9.41%; past twelve-month period ? up 24.61%; and year-to-date ? up 11.88%

After yesterday's close, Maxim Integrated Products' market cap was at $16.28 billion.

Price to Earnings (P/E) ratio was at 24.28.

The stock has a dividend yield of 2.87%.

The stock is part of the Technology sector, categorized under the Semiconductor - Broad Line industry. This sector was up 0.3% at the end of the session.

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