Altera Corporation Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Altera Corporation (NASDAQ:ALTR) will unveil its latest earnings on Tuesday, July 19, 2011. Altera Corp. designs and manufactures programmable logic devices, HardCopy ASIC devices, pre-defined design building blocks, cores and associated development tools.

Altera Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 64 cents per share, a rise of 10.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 62 cents. For the year, analysts are projecting profit of $2.58 per share, a rise of 3.6% 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 3 cents, reporting net income of 68 cents per share against a mean estimate of profit of 65 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $548.7 million in revenue this quarter, a rise of 16.9% from the year ago quarter. Analysts are forecasting total revenue of $2.19 billion for the year, a rise of 12.3% from last year’s revenue of $1.95 billion.

Analyst Ratings: 14 out of 24 analysts surveyed (58.3%) have a buy rating on Altera.. This is below the mean analyst rating of 10 competitors, which average 68.7% buy ratings.

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 59.4%, 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 now seen net income rise in three straight quarters. In the first quarter, net income rose 46.3% while it rose more than twofold in the fourth quarter of the last fiscal year and more than threefold in the third 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), Intel (NASDAQ:INTC), ON Semiconductor Corp. (NASDAQ:ONNN), Broadcom Corporation (NASDAQ:BRCM), TranSwitch Corporation (NASDAQ:TXCC), and Aeroflex Holding Corp. (NYSE:ARX).

Stock Price Performance: During July 7, 2011 to July 13, 2011, the stock price had dropped $4.46 (-9.3%) from $48.12 to $43.66. Shares have been on an upward streak of late, closing up every day between July 7, 2011 and July 13, 2011. It saw one of its worst periods between September 10, 2010, and September 20, 2010, when shares fell for seven-straight days, falling 9% (-$2.58) over that span. Shares are up $8.18 (+23.1%) year to date.

(Source: Xignite Financials)

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