Linear Technology First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Linear Technology (NASDAQ:LLTC) will unveil its latest earnings on Tuesday, October 16, 2012. Linear Technology offers a line of standard high performance linear integrated circuits.

Linear Technology Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 46 cents per share, a decline of 4.2% 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 48 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 46 cents during the last month. For the year, analysts are projecting net income of $1.92 per share, a rise of 9.1% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at profit of 44 cents per share versus a mean estimate of net income of 46 cents per share. In the third quarter of the last fiscal year, the company beat estimates by 2 cents.

Are you well-positioned with a winning post-election portfolio?: Check out our newest CHEAT SHEET stock picks now>>

A Look Back: In the fourth quarter of the last fiscal year, profit fell 34.7% to $103.3 million (44 cents a share) from $158.2 million (68 cents a share) the year earlier, missing analyst expectations. Revenue fell 8% to $330 million from $358.6 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 7.6% in revenue from the year-earlier quarter to $331.3 million.

Stock Price Performance: Between July 17, 2012 and October 10, 2012, the stock price rose $1.78 (6%), from $29.83 to $31.61. 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 May 8, 2012 and May 18, 2012 when shares fell for nine straight days, dropping 7% (-$2.17) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 15.1% in the first quarter of the last fiscal year, 23.3% in second quarter of the last fiscal year and 11.6% in the third quarter of the last fiscal year and then fell again in the fourth quarter of the last fiscal year of the last fiscal year.

Heading into this earnings announcement, net income has dropped 31.2% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 8.83 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 9.18 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 11.5% to $170.6 million while assets rose 7.2% to $1.51 billion.

Analyst Ratings: With seven analysts rating the stock as a buy, four rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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 by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Wal-Mart vs. Amazon: The Battle Continues

Is This Drug Giant’s Stock a Buy Now?

Are Social and Mobile Games Still Cool?