Altera Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Altera Corp (NASDAQ:ALTR) will unveil its latest earnings on Thursday, October 20, 2011. Altera designs and manufactures programmable logic devices, HardCopy ASIC devices, pre-defined design building blocks, cores, and associated development tools.

Altera Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 59 cents per share, a decline of 14.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 59 cents during the last month. For the year, analysts are projecting profit of $2.51 per share, a rise of 0.8% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 65 cents per share against a mean estimate of profit of 64 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 2.8% in revenue from the year-earlier quarter to $542.2 million.

Analyst Ratings: 14 out of 23 analysts surveyed (60.9%) have a buy rating on Altera.. This is below the mean analyst rating of 10 competitors, which average 64.3% buy ratings.

A Look Back: In the second quarter, profit rose 18.8% to $214.6 million (65 cents a share) from $180.6 million (58 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 16.9% to $548.4 million from $469.3 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 46.6%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 84% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 46.3% in the first quarter and more than twofold in the fourth quarter of the last fiscal year.

Competitors to Watch: Lattice Semiconductor (NASDAQ:LSCC), Xilinx, Inc. (NASDAQ:XLNX), QuickLogic Corporation (NASDAQ:QUIK), Texas Instruments Inc. (NYSE:TXN), Microsemi Corporation (NASDAQ:MSCC), Cypress Semicond. Corp. (NASDAQ:CY), ON Semiconductor Corp. (NASDAQ:ONNN), Broadcom Corporation (NASDAQ:BRCM), TranSwitch Corporation (NASDAQ:TXCC), and Aeroflex Holding Corp. (NYSE:ARX).

Stock Price Performance: During July 21, 2011 to October 14, 2011, the stock price had fallen $6.29 (-14.9%) from $42.22 to $35.93. The stock price saw one of its best stretches over the last year between November 16, 2010 and November 24, 2010 when shares rose for seven-straight days, rising 11.9% (+$3.80) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 8.9% (-$3.43) over that span. Shares are up 52 cents (+1.5%) year to date.

(Source: Xignite Financials)

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