Linear Technology Earnings: Here’s Why Investors are Not Happy Now

Linear Technology Corp. (NASDAQ:LLTC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.76%.

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Linear Technology Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.55% to $0.46 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 0.7% to $314.54 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Linear Technology Corp. reported adjusted EPS income of $0.46 per share. By that measure, the company beat the mean analyst estimate of $0.44. It beat the average revenue estimate of $313.46 million.

Quoting Management: According to Lothar Maier, CEO, “We are pleased to report a solid quarter with sequential growth at the higher end of our guidance. We grew quarterly revenues 3% sequentially, had a positive book-to-bill ratio and improved our gross margin and operating margin as we continue to control spending where practical. The two end-markets most favorably impacted by the improved bookings were the automotive and industrial end-markets. Looking forward, customers generally acknowledge growth, but continue to order cautiously to the low-end of published lead times. As a result, we are currently estimating revenue growth in the same range we guided last quarter, 1% to 4% for our fiscal fourth quarter.”

Key Stats (on next page)…

Revenue increased 3.03% from $305.28 million in the previous quarter. EPS increased 15% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.45. For the current year, the average estimate has moved down from a profit of $1.75 to a profit of $1.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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