Linear Technology Beats Expectations but Takes a Step Back Anyway
Linear Technology (NAS: LLTC) reported earnings on April 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 1 (Q3), Linear Technology met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Linear Technology booked revenue of $312.4 million. The 22 analysts polled by S&P Capital IQ anticipated revenue of $312.4 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $353.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.44. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.43 per share on the same basis. GAAP EPS of $0.42 for Q3 were 31% lower than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.1%, 250 basis points worse than the prior-year quarter. Operating margin was 44.8%, 590 basis points worse than the prior-year quarter. Net margin was 31.5%, 860 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $329.1 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $1.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 724 members out of 758 rating the stock outperform, and 34 members rating it underperform. Among 285 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 279 give Linear Technology a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Linear Technology is outperform, with an average price target of $34.60.
Is Linear Technology the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Linear Technology to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Linear Technology. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.