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
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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