The 10-second takeaway
For the quarter ended March 30 (Q1), Altera missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Altera recorded revenue of $383.8 million. The 28 analysts polled by S&P Capital IQ expected a top line of $422.6 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $535.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.35. The 29 earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. GAAP EPS of $0.35 for Q1 were 49% lower than the prior-year quarter's $0.68 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 70.1%, 250 basis points worse than the prior-year quarter. Operating margin was 30.4%, 1,540 basis points worse than the prior-year quarter. Net margin was 30.2%, 1,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $449.4 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $1.85 billion. The average EPS estimate is $1.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 338 members rating the stock outperform, and 29 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Altera 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 Altera is outperform, with an average price target of $41.45.
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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.