The 10-second takeaway
For the quarter ended March 31 (Q3), Linear Technology met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share increased. GAAP earnings per share expanded.
Gross margins shrank, operating margins dropped, net margins increased.
Linear Technology notched revenue of $314.5 million. The 20 analysts polled by S&P Capital IQ predicted a top line of $313.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.48. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. Non-GAAP EPS of $0.48 for Q3 were 9.1% higher than the prior-year quarter's $0.44 per share. GAAP EPS of $0.46 for Q3 were 9.5% higher than the prior-year quarter's $0.42 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 74.8%, 30 basis points worse than the prior-year quarter. Operating margin was 44.0%, 80 basis points worse than the prior-year quarter. Net margin was 35.3%, 380 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $329.1 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $1.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 701 members out of 738 rating the stock outperform, and 37 members rating it underperform. Among 256 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 249 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 $37.03.
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