Altera (Nasdaq: ALTR) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 28 (Q3), Altera beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped.

Gross margins expanded, operating margins shrank, net margins shrank.

Revenue details
 Altera booked revenue of $495.0 million. The 28 analysts polled by S&P Capital IQ expected sales of $483.2 million on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $522.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.49. The 27 earnings estimates compiled by S&P Capital IQ forecast $0.46 per share. GAAP EPS of $0.49 for Q3 were 14% lower than the prior-year quarter's $0.57 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 69.3%, 130 basis points better than the prior-year quarter. Operating margin was 35.8%, 350 basis points worse than the prior-year quarter. Net margin was 31.8%, 370 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $496.0 million. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $1.78.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 340 members out of 369 rating the stock outperform, and 29 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 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 $39.16.

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.