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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