Benzinga | Jan 25, 2021 10:20AM EST

Earnings Outlook for Maxim Integrated Products

Maxim Integrated Products (NASDAQ:MXIM) unveils its next round of earnings this Tuesday, January 26. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, 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

Based on management's projections, Maxim Integrated Products analysts model for earnings of $0.68 per share on sales of $604.46 million. In the same quarter last year, Maxim Integrated Products reported earnings per share of $0.56 on sales of $551.07 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 21.43% increase in the company's earnings. Revenue would be up 9.69% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.58 0.56 0.58 0.53EPS Actual 0.72 0.58 0.61 0.56Revenue Estimate 545.15 M 537.23 M 562.23 M 545.22 MRevenue Actual 619.36 M 545.37 M 561.92 M 551.07 M

Stock Performance

Over the last 52-week period, shares of Maxim Integrated Products are up 51.63%.

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.