Linear Technology Corp Fourth Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Linear Technology Corp (NASDAQ:LLTC) will unveil its latest earnings on Tuesday, July 26, 2011. Linear Technology Corp. offers a line of standard high performance linear integrated circuits.

Linear Technology Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 56 cents per share, a rise of 3.7% 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 57 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 56 cents during the last month. For the year, analysts are projecting net income of $2.42 per share, a rise of 49.4% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 62 cents per share against a mean estimate of net income of 56 cents, and the quarter before, the company exceeded forecasts by 5 cents with profit of 63 cents versus a mean estimate of net income of 58 cents.

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Wall St. Revenue Expectations: On average, analysts predict $359.5 million in revenue this quarter, a decline of 1.8% from the year ago quarter. Analysts are forecasting total revenue of $1.48 billion for the year, a rise of 26.5% from last year’s revenue of $1.17 billion.

Analyst Ratings: Analysts seem relatively indifferent about Linear Technology with 12 of 21 analysts surveyed maintaining a hold rating.

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 50.9%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 76% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 40.7% while it rose 90.3% in the second quarter and more than twofold in the first quarter.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Analog Devices, Inc. (NYSE:ADI), National Semicond. Corp. (NYSE:NSM), Maxim Integrated Products Inc. (NASDAQ:MXIM), Intersil Corporation (NASDAQ:ISIL), Micrel, Incorporated (NASDAQ:MCRL), Advanced Analogic Tech. Incorp. (NASDAQ:AATI), ON Semiconductor Corp. (NASDAQ:ONNN), Semtech Corporation (NASDAQ:SMTC), and Microchip Technology Inc. (NASDAQ:MCHP).

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had fallen $3.81 (-11.2%) from $34.05 to $30.24. The stock price saw one of its best stretches over the last year between May 24, 2011 and May 31, 2011 when shares rose for five-straight days, rising 3.8% (+$1.28) over that span. It saw one of its worst periods between May 31, 2011 and June 13, 2011 when shares fell for 10-straight days, falling 9.7% (-$3.34) over that span. Shares are down $3.87 (-11.3%) year to date.

(Source: Xignite Financials)

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