Linear Technology Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Linear Technology (NASDAQ:LLTC) will unveil its latest earnings on Tuesday, July 24, 2012. Linear Technology offers a line of standard high performance linear integrated circuits.

Linear Technology Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 46 cents per share, a decline of 33.3% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 32% compared to last year’s $1.74.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 44 cents per share against a mean estimate of net income of 42 cents, and the quarter before, the company exceeded forecasts by one cent with profit of 40 cents versus a mean estimate of net income of 39 cents.

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A Look Back: In the third quarter, profit fell 30.4% to $98.5 million (42 cents a share) from $141.6 million (61 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 11.6% to $312.4 million from $353.2 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 7.8% in revenue from the year-earlier quarter to $330.6 million.

Stock Price Performance: Between May 21, 2012 and July 18, 2012, the stock price had risen $1.65 (5.6%), from $29.35 to $31. The stock price saw one of its best stretches over the last year between March 5, 2012 and March 13, 2012, when shares rose for seven straight days, increasing 4.9% (+$1.58) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10 straight days, dropping 16.4% (-$5.12) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 2.1% in the fourth quarter of the last fiscal year, 15.1% in first quarter and 23.3% in the second quarter and then fell again in the third quarter.

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 21% in the first quarter, by 38.9% in the second quarter and again in the third quarter.

Analyst Ratings: With seven analysts rating the stock as a buy, three rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 9.18 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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