The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Altera missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Altera logged revenue of $439.4 million. The 28 analysts polled by S&P Capital IQ predicted a top line of $450.9 million on the same basis. GAAP reported sales were 4.0% lower than the prior-year quarter's $457.8 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 $0.37. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.37 for Q4 were 18% lower than the prior-year quarter's $0.45 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 69.7%, 40 basis points worse than the prior-year quarter. Operating margin was 31.4%, 360 basis points worse than the prior-year quarter. Net margin was 27.5%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $462.0 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $1.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 335 members out of 365 rating the stock outperform, and 30 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 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 $35.09.
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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. TMFDisclosureHere