Why Altera Jumped
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 Altera (NAS: ALTR) jumped today by as much as 18% after the company reported a strong second quarter and boosted its dividend.
So what: Revenue came out to be $464.8 million, up 21% sequentially. Net income was $162.7 million, or $0.50 per share. Compare those with the market's expectations of $445.2 million in sales and $0.39 per share in profit, and you can see why investors are cheering today.
Now what: The board has also boosted the quarterly cash dividend by 25%, from $0.08 to $0.10 per share. Additionally, the board increased its share-repurchase authorization by 10 million shares up to 14.6 million. CEO John Daane said demand was strong for the company's 29-nanometer and 40-nanometer products, which drove revenue growth. There was particular strength in the telecom and wireless markets.
Interested in more info on Altera? Add it to yourWatchlist.
The article Why Altera Jumped originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.