Altera Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Altera (NAS: ALTR) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q2), Altera beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Altera logged revenue of $464.8 million. The 27 analysts polled by S&P Capital IQ predicted revenue of $445.5 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $548.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.50. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS of $0.50 for Q2 were 23% lower than the prior-year quarter's $0.65 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 69.6%, 130 basis points worse than the prior-year quarter. Operating margin was 34.3%, 910 basis points worse than the prior-year quarter. Net margin was 35.0%, 410 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $471.1 million. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $1.79 billion. The average EPS estimate is $1.69.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 341 members out of 371 rating the stock outperform, and 30 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give Altera 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 Altera is outperform, with an average price target of $40.38.

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The article Altera Crushes Earnings Estimates originally appeared on Fool.com.

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. 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.

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