Linear Technology Earnings: Here’s Why Shares are Up 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 up 0.19%.

Linear Technology Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.89% to $0.49 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Decreased 0.82% to $327.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Linear Technology Corp. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.43. It beat the average revenue estimate of $323.2 million.

Quoting Management: According to Lothar Maier, CEO, “We completed our fourth fiscal quarter with revenues at the high end of our guidance, up 4% sequentially, led by higher sales into the automotive and industrial markets. In addition, we improved both gross margin and operating margin which continue at industry leading levels. The June quarter was also our fiscal year end, and though fiscal 2013 suffered from a difficult macro economic environment, we managed to grow revenues slightly over the prior fiscal year, up 1.2%, and increase net income and earnings per share. Heading into the new fiscal year, we are optimistic about our future growth prospects. We ended the fiscal year with a good bookings quarter and a book-to-bill ratio greater than one. Historically, the first fiscal quarter is a seasonally weak period for us, but given our current bookings level we are currently forecasting that revenues for our first quarter of fiscal 2014 will be up 2% to 5%.”

Key Stats (on next page)…

Revenue increased 4.06% from $314.54 million in the previous quarter. EPS increased 2.08% from $0.48 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.45 to a profit $0.46. For the current year, the average estimate is a profit of $1.77, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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