The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Altera beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and earnings per share dropped significantly.
Margins contracted across the board.
Altera reported revenue of $458 million. The 24 analysts polled by S&P Capital IQ anticipated sales of $446 million. Sales were 18% lower than the prior-year quarter's $555 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.45. The earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.45 for Q4 were 36% lower than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 70.1%, 90 basis points worse than the prior-year quarter. Operating margin was 35.0%, 1,240 basis points worse than the prior-year quarter. Net margin was 32%, 970 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $455 million.
Next year's average estimate for revenue is $2 billion. The average EPS estimate is $2.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 343 members out of 372 rating the stock outperform, and 29 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give Altera a green thumbs-up, and five 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 $39.37.
Is Altera 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 Altera to My Watchlist.
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 of Motley 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.