The 10-second takeaway
For the quarter ended April 1 (Q3), Linear Technology met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Linear Technology booked revenue of $312.4 million. The 22 analysts polled by S&P Capital IQ anticipated revenue of $312.4 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $353.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.44. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.43 per share on the same basis. GAAP EPS of $0.42 for Q3 were 31% lower than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.1%, 250 basis points worse than the prior-year quarter. Operating margin was 44.8%, 590 basis points worse than the prior-year quarter. Net margin was 31.5%, 860 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $329.1 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $1.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 724 members out of 758 rating the stock outperform, and 34 members rating it underperform. Among 285 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 279 give Linear Technology 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 Linear Technology is outperform, with an average price target of $34.60.
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