Linear Technology Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Linear Technology Corp (NASDAQ:LLTC) will unveil its latest earnings on Tuesday, April 17, 2012. Linear Technology 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 42 cents per share, a decline of 32.3% 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 41 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 42 cents during the last month. Analysts are projecting profit to rise by 31.3% versus last year to $1.76.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported net income of 40 cents per share against a mean estimate of profit of 39 cents per share. In the first quarter, it missed forecasts by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $312.4 million in revenue this quarter, a decline of 11.6% from the year-ago quarter. Analysts are forecasting total revenue of $1.27 billion for the year, a decline of 14.2% from last year’s revenue of $1.48 billion.

Analyst Ratings: Optimism surrounds Linear Technology, as six analysts rate it as a buy, three rate it as a sell, and eight rate it as a hold.

A Look Back: In the second quarter, profit fell 38.9% to $87.9 million (38 cents a share) from $143.7 million (62 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 23.3% to $294.3 million from $383.6 million.

Key Stats:

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 21% in the first quarter and then again in the second quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2.1% in the fourth quarter of the last fiscal year and 15.1% in first quarter before falling again in the second quarter.

Stock Price Performance: Between January 13, 2012 and April 11, 2012, the stock price rose $2.30 (7.7%), from $29.84 to $32.14. The stock price saw one of its best stretches over the last year between March 5, 2012 and March 13, 2012, when shares rose for seven straight days, increasing 4.9% (+$1.58) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10 straight days, dropping 16.4% (-$4.99) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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