Please ensure Javascript is enabled for purposes of website accessibility

What to Expect from Altera

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

Altera (Nasdaq: ALTR) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Altera's revenues will grow 7.7% and EPS will shrink -8.6%.

The average estimate for revenue is $413.5 million. On the bottom line, the average EPS estimate is $0.32.

Revenue details
Last quarter, Altera tallied revenue of $439.4 million. 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 details
Last quarter, non-GAAP EPS came in at $0.37. GAAP EPS of $0.38 for Q4 were 16% 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $1.82 billion. The average EPS estimate is $1.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 325 members out of 353 rating the stock outperform, and 28 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Altera a green thumbs-up, and six 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.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.