Earnings Cheat Sheet: National Semiconductor Misses Sales Forecasts Despite 78% Rise in Profits

National Semiconductor (NYSE:NSM) produces a wide variety of analog and mixed-signal integrated circuits. The company had an awesome jump in profits, but a weak sales outlook spooked investors. Shares are down ~4% after-hours.

Earnings: Jumped 78% to $.34 per share, or $83.5 million, compared to $.20 per share, or $47 million, in the same period a year ago.

Revenue: Rose 13.3% to $390.4 million, compared to $344.6 million in the prior year.

Actual versus Wall Street Expectations: Earnings beat expectations by $.02 cents, but revenues fell short of Wall Street’s desire for $399.4 million (FactSet Research).

Notable Stats: National’s second quarter sales were 5% lower than the $412.0 million in sales reported in the first quarter of fiscal 2011.

Gross margin of 68.9% decreased from 70.9% in the first quarter of 2011.

For the third quarter of fiscal 2011, National projects revenues to be between $344 million to $359 million, or a decrease of 8% to 12% sequentially. Guidance for the third quarter of fiscal 2011 is slightly below National’s five-year average sequential decline of 9%, driven primarily by adjustments in the supply chain.

Did You Hear That? Don Macleod, National Semiconductor’s CEO stated: “[A]lthough distributor resales of our products were about flat sequentially, we shipped approximately $25 million less to them than in the preceding quarter. Secondly, we saw, in aggregate, slower demand from mobile phone customers than we typically see in this seasonally strong, pre-holiday season quarter.”

Commentary: Shares of NSM had been rallying lately. Today’s earnings announcement will hurt recent bulls. Watch to see if NSM can hold the 50 DMA.

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Disclosure: No position.

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