The 10-second takeaway
For the quarter ended Dec. 30 (Q2), Linear Technology missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share didn't change.
Margins contracted across the board.
Linear Technology chalked up revenue of $305.3 million. The 22 analysts polled by S&P Capital IQ anticipated revenue of $310.3 million on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $294.3 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 $0.39. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.38 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.4%, 50 basis points worse than the prior-year quarter. Operating margin was 43.5%, 170 basis points worse than the prior-year quarter. Net margin was 29.1%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $320.6 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $1.30 billion. The average EPS estimate is $1.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 714 members out of 748 rating the stock outperform, and 34 members rating it underperform. Among 282 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 275 give Linear Technology a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Linear Technology is hold, with an average price target of $33.80.
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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. The Motley Fool recommends Linear Technology. 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.