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Earnings Analysis: 
Maxim Earnings Shoot Up
Author: George Shopov
123jump.com



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Maxim Integrated Products, Inc. (MXIM) announced after market close Friday a 53% surge in its quarterly earnings, driven by rising sales of its chips. The Sunnyvale, California-based chip maker said that its net income jumped to $124.7 million, or 36 cents per share, in the fourth quarter of fiscal 2004, from prior-year net income of $81.7 million, or 24 cents per share. For the quarter ended June 26, net revenues increased 42.7% to $421.0 million, from $295.0 million a year ago, boosted by strong demand for the company’s analog and mixed-signal circuits. Analysts had predicted a fourth-quarter profit of 36 cents per share and revenue of $420.6 million. Maxim said that orders for power management products soared 68% in the quarter, while data converter orders rocketed up 72% from last year. For all of 2004, earnings totaled $419.8 million, or $1.20 per share, up 36% from earnings of $309.6 million, or 91 cents per share, for fiscal year 2003. Annual net revenues were up 25% to $1.44 billion from $1.15 billion.

Maxim shares dived 5.05% to close Friday at $44.23. The stock gained 62 cents to $44.85 in after-hours trading.

CenterPoint Energy, Inc. (CNP) said before the bell Friday that its quarterly profits slipped 8% from last year, hurt by unfavorable weather conditions and increased transmission costs. The Houston, Texas-based utility holding company announced net earnings of $58 million, or 19 cents a share, for its fiscal 2004 second quarter, compared with net earnings of $63 million, or 21 cents a share, for the year-ago equivalent. Results fell a penny a share shy of the average analysts’ estimate. Revenue in the quarter climbed 7% to $2.24 billion.

The stock dipped 1.67% on Friday to $11.17. Company shares inched up 6 cents to $11.23 in after-market trade.

Pepco Holdings, Inc. (POM) of Washington, DC, reported Friday that its second-quarter net profit more than doubled to $90.4 million, or 53 cents a share, from a net profit of $43 million, or 25 cents a share, for the 2003 corresponding quarter. Excluding items, the power company posted a profit of 48 cents a share for the quarter, gliding past the mean analysts’ forecast of 28 cents a share. Pepco attributed the results to solid sales growth.

Pepco shares closed Friday at $18.35, down 1 cent, or 0.05%.

Elizabeth Arden, Inc. (RDEN) posted Friday a smaller quarterly loss, helped by improving fragrance sales to mass retailers. The Miami Lakes, Florida-based cosmetics company turned in a fourth-quarter loss of 35 cents a share on sales of $154.6 million, in contrast to a loss of 90 cents a share on sales of $131.9 million, a year earlier. Analysts were looking for a loss of 37 cents a share, on average.

The stock soared 6.72% to $20.49 at market close Friday. Company shares added a penny to $20.50 in the extended session.

AXA (AXA) reported Friday a huge rise in its earnings for the first six months of the year, bolstered by strong performances across all of its business divisions. The France-based world’s No.3 insurance company rolled out net income of €1.44 billion ($1.74 billion) for the first half of fiscal 2004, compared with net income of €209 million, generated in the same period a year ago, when results included impairment charges. Excluding items, earnings rose 32% year-over-year. Quarterly revenue advanced 2.4% to €37.3 billion ($45.0 billion).

Axa shares closed Friday down 2.27%, or 46 cents, at $19.78.

The Goodyear Tire & Rubber Company (GT) reported Thursday a second-quarter net profit of $25.1 million, or 14 cents a share, a turnaround from a loss of $53.0 million, or 30 cents a share, in the 2003 comparable period. The earnings glided past the consensus analysts’ estimate of 8 cents a share. The Akron, Ohio-based tire maker said higher prices and sales of new products contributed for the improvement.

The stock closed Thursday at $10.90, up 5 cents, or 0.46%.

The Williams Companies, Inc. (WMB) of Tulsa, Oklahoma, posted Thursday a net loss for its fiscal second quarter, weighed down by one-time costs. The natural gas company said that it had a loss of $18.2 million, or 3 cents per share, in the second quarter, in contrast to a profit of $269.7 million, or 46 cents per share, a year ago. Excluding items, Williams reported a profit of 12 cents per share, surpassing the average analysts’ view by 5 cents.

Company shares edged up 20 cents on Thursday to $11.98.

King Pharmaceuticals, Inc. (KG) said Thursday that its quarterly loss widened, hurt by charges and weaker sales. The Bristol, Tennessee-based drug maker posted a second-quarter net loss of $63.5 million, or 26 cents a share, in contrast to a loss of $35 million, or 15 cents a share, for the same period in 2003. Quarterly revenue plunged 25% to $275.1 million.

The stock rose 3.64% to close Thursday at $11.97.

Pixar Animation Studios (PIXR) of Emeryville, California, on Thursday rolled out net income of $37.4 million, or 63 cents per share, for its second quarter, a 92% surge from year-earlier net income of $19.5 million, or 34 cents per share. The digital animation studio attributed the profit rise to strong international home video sales of 'Finding Nemo'. Analysts had called for a profit of 37 cents per share, on average. Revenue in the quarter climbed to $66.3 million from $48.9 million, last year.

Pixar shares dipped 3.59% to $66.00 at market close Thursday. The stock gained $2.18 to $68.18 in the extended session.

Sara Lee Corporation (SLE) announced Thursday that its fourth-quarter earnings jumped 20% to $354 million, or 44 cents a share, from $296 million, or 37 cents a share, for the fourth quarter in fiscal 2003. The Chicago, Illinois-based consumer products company said strong sales of bakery goods and meat, and favorable currency exchange rates helped boost its profits. Total sales rose 11% in the quarter to $5.1 billion.

The stock closed Thursday down 17 cents, or 0.79%, at $21.23.
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Market data: BATS Exchange. Inc.

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