Altera Corporation Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Altera Corporation (NASDAQ:ALTR) will unveil its latest earnings on Tuesday, September 6, 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 profit of 64 cents per share, a decline of 7.2% 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 63 cents. Between one and three months ago, the average estimate moved up, but it has been unchanged at 64 cents during the last month. For the year, analysts are projecting net income of $2.62 per share, a rise of 5.2% 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 profit of 65 cents per share against a mean estimate of net income of 64 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $570.1 million in revenue this quarter, a rise of 8.1% from the year ago quarter. Analysts are forecasting total revenue of $2.22 billion for the year, a rise of 13.8% from last year’s revenue of $1.95 billion.

Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, none rating it as a sell and eight rating it as a hold.

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 now seen net income rise in three straight quarters. In the second quarter, net income rose 18.8% while it 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 6, 2011 to August 31, 2011, the stock price had fallen $10.59 (-22.5%) from $46.98 to $36.39. 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 July 7, 2011 and July 14, 2011 when shares fell for six-straight days, falling 11.5% (-$5.52) over that span. Shares are up 98 cents (+2.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.