Linear Technology Corporation Sinks on Soft Sales

Image source: Linear Technology.

Shares of Linear Technology Corporation (NASDAQ: LLTC  ) fell nearly 2% in after-hours trading, following the release of the analog chip maker's third-quarter results.

Revenues increased 11% year over year to $348 million. GAAP earnings grew 4.3% to $0.48 per share.

The results missed the Street's revenue view by $2 million and matched the earnings consensus.

Linear Technologies enjoyed a 21% tax rate this quarter compared with 25% in the second quarter, thanks to tax liability reserves that were released as their auditable periods expired. Similar audit expirations plus a federal R&D tax credit led to a minuscule 12.75% tax rate in the third quarter of 2013.

CEO Lothar Maier noted that order bookings exceeded billed deliveries this quarter, which points to growing revenues in future quarters. "Bookings increased sequentially in all of our major markets, with the automotive, industrial and communications markets showing the most gains," Maier said in a prepared statement.

Driven by the growing order bookings, Linear Technologies expects revenues to increase between 2% and 6% in the next quarter. Analysts are currently hoping for $365 million in fourth-quarter revenues, which works out to 5% sequential growth.

The stock set brand new multi-year highs earlier this month. Including the weak after-hours price action, Linear Technologies is still trading 26% higher over the last 52 weeks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2916913, ~/Articles/ArticleHandler.aspx, 8/28/2015 11:11:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

Hypoallergenic. Contains six flavors not found in nature. Believes in coyotes and time as an abstract.

Follow Anders on Twitter, LinkedIn, and Google+.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
LLTC $40.81 Up +0.12 +0.29%
Linear Technology CAPS Rating: ***