Linear Technology Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of analog integrated circuit maker Linear Technology (NAS: LLTC) have popped by as much as 11% today after the company reported second-quarter results.

So what: Revenue for the quarter totaled $294.3 million, and earnings per share added up to $0.38. Both figures represented year-over-year declines, but came in mostly in line with the consensus estimates of $293.1 million and $0.39 per share, respectively.

Now what: The real culprit behind the rally can be found in Linear's third-quarter guidance, which calls for $306.1 million to $317.8 million in sales, notably higher than the $302.5 million expectation. It also helped that the company notched up its quarterly dividend by a penny to $0.25 per share, the 20th consecutive year that Linear has raised its dividend. Linear CEO Lothar Maier said it was "an encouraging quarter in a difficult global economic environment," and the strong guidance suggests the worst may be over.

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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Linear Technology. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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