Altera Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Altera (NASDAQ:ALTR) will unveil its latest earnings on Wednesday, January 23, 2013. Altera designs and manufactures programmable logic devices, HardCopy ASIC devices, pre-defined design building blocks, cores, and associated development tools.

Altera Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 39 cents per share, a decline of 13.3% 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 48 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 39 cents during the last month. For the year, analysts are projecting profit of $1.73 per share, a decline of 26.4% from last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 49 cents per share against the mean estimate of 46 cents. In the prior quarter, the company reported profit of 50 cents.

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Stock Price Performance: Between November 16, 2012 and January 16, 2013, the stock price had risen $4.71 (15.5%), from $30.45 to $35.16. The stock price saw one of its best stretches over the last year between March 12, 2012 and March 19, 2012, when shares rose for six straight days, increasing 5.3% (+$1.99) over that span. It saw one of its worst periods between September 14, 2012 and October 1, 2012 when shares fell for 12 straight days, dropping 11.3% (-$4.30) over that span.

A Look Back: In the third quarter, profit fell 15.1% to $157.5 million (49 cents a share) from $185.4 million (57 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.3% to $495 million from $522.5 million.

Analyst Ratings: With 10 analysts rating the stock as a buy, none rating it as a sell and 10 rating it as a hold, there are indications of a bullish outlook.

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 17.6% in the fourth quarter of the last fiscal year, 28.4% in first quarter and 15.2% in the second quarter and then fell again in the third quarter.

Heading into this earnings announcement, net income has dropped 31.1% on average for the last four quarters.

Wall St. Revenue Expectations: Analysts predict a decline of 1.5% in revenue from the year-earlier quarter to $450.7 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.09 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)