The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Linear Technology met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.
Margins dropped across the board.
Linear Technology reported revenue of $335.1 million. The 22 analysts polled by S&P Capital IQ predicted revenue of $334.7 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $329.9 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 $0.46. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.46 per share. GAAP EPS of $0.45 for Q1 were 4.3% lower than the prior-year quarter's $0.47 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 75.0%, 80 basis points worse than the prior-year quarter. Operating margin was 46.3%, 150 basis points worse than the prior-year quarter. Net margin was 31.4%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $338.9 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.39 billion. The average EPS estimate is $1.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 719 members out of 753 rating the stock outperform, and 34 members rating it underperform. Among 246 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 240 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 $34.89.
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