Maxim, AMD, and FireEye Move in After-Hours Trading


Oct. 29 2019, Published 5:27 p.m. ET

Tech stocks Maxim Integrated (MXIM), Advanced Micro Devices (AMD), and FireEye (FEYE) are the major movers in after-hours trading today. While MXIM has gained over 9% at the time of writing, AMD and FEYE have lost 2% and 3%, respectively, after-hours.

FEYE lost close to 5% in normal-hours trading as well. AMD fell 2% while Maxim returned 1.2% earlier today.

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Maxim Integrated reported quarterly earnings results

Maxim reported revenue of $533 million in the first quarter of fiscal 2020 (the fiscal year ending in June). This was a 17% year-over-year fall compared to the prior-year quarter and a 4% fall from the June quarter. The company reported adjusted earnings per share of $0.51. Maxim beat analyst revenue estimates of $531 million. It also beat earnings estimates of $0.49.

In the December quarter, Maxim forecast sales between $525 million and $565 million with EPS between $0.49 and $0.57. Analysts estimate revenue of $535.24 million and earnings of $0.51 in the second quarter.

You can see that Maxim’s earnings beat and better-than-expected forecast have driven the stock higher in today’s after-hours session.

AMD announced third-quarter earnings results

AMD announced its third-quarter earnings results and reported revenue of $1.8 billion, a rise of 9.1% year-over-year. Adjusted earnings per share rose 38.5% to $0.18 in the September quarter. Analysts expected AMD to post revenue of $1.81 billion and EPS of $0.18.

In the fourth quarter, AMD estimated sales between $2.05 billion and $2.15 billion while analysts expected sales to rise 51.5% to $2.15 billion.

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AMD CEO Dr. Lisa Su stated, “Our first full quarter of 7nm Ryzen, Radeon and EPYC processor sales drove our highest quarterly revenue since 2005, our highest quarterly gross margin since 2012 and a significant increase in net income year-over-year. I am extremely pleased with our progress as we have the strongest product portfolio in our history, significant customer momentum and a leadership product roadmap for 2020 and beyond.”

FireEye stock down after earnings

Cyber-security company FireEye (FEYE) also announced its third-quarter earnings today. FireEye reported sales of $225.9 million and adjusted earnings of $0.02. In the prior-year quarter, FEYE sales came in at $211.7 million while earnings were at $0.06.

Analysts estimated FireEye to post revenue of $219.8 million with EPS of $0.01. In the fourth quarter, FEYE estimates sales between $224 million and $228 million with EPS between $0.03 and $0.05. Comparatively, analysts expected FireEye to post revenue of $224.14 million and EPS of $0.04 in the December quarter.

Why these after-hours stock movements?

It’s unclear why AMD and FireEye are trading lower in today’s after-hours session despite meeting Wall Street estimates in their earnings reports.

Maxim is currently trading at $64, which is above the average analyst price target of $61.13. Investors can expect the price target to be revised higher after the company’s earnings beat.

AMD is trading at $32.9, which is just below its target price of $33.54, while FireEye stock is trading at $14.95 and 18% below its target price of $18.2.


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