Linear Technology Beats Analyst Estimates on EPS

Linear Technology (Nasdaq: LLTC  ) reported earnings on Jan. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 1 (Q2), Linear Technology met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly, and earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Linear Technology logged revenue of $294 million. The 20 analysts polled by S&P Capital IQ wanted to see a top line of $293 million. Sales were 23% lower than the prior-year quarter's $384 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.39. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share on the same basis. GAAP EPS of $0.38 for Q2 were 39% lower than the prior-year quarter's $0.62 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 74.9%, 360 basis points worse than the prior-year quarter. Operating margin was 45.2%, 720 basis points worse than the prior-year quarter. Net margin was 29.9%, 760 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $312 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $1.3 billion. The average EPS estimate is $1.76.

Investor Sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 727 members out of 762 rating the stock outperform, and 35 members rating it underperform. Among 318 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 312 give Linear Technology a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Linear Technology is hold, with an average price target of $31.53.

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