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Altera's Third Quarter Earnings Report
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Altera (Nasdaq:ALTR) announced its results for the most recent quarter on October 23, 2012. Altera designs and manufactures programmable logic devices, HardCopy ASIC devices, pre-defined design building blocks, cores, and associated development tools.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Altera managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported 49 cents per share versus the 46 cents per share estimate and revenues of $495 million versus the $445.2 million estimate. Revenue fell 5.3% from the same period last year while EPS is down 14%. Revenue has fallen in the past four quarters. The company's net income for the quarter was $157.5 million. This is a 15.1% decline from last year.
Management Quote: "Despite uneven global economic conditions, Altera experienced relatively broad vertical market sequential growth with both our new and mainstream product categories performing well," said John Daane, president, chief executive officer, and chairman of the board. "Our 28 nm opportunity pipeline exceeds that of any prior process node as FPGAs continue to displace ASICs. Altera is the only 28 nm FPGA supplier to offer production-qualified devices across our entire range of product families, which gives us clear advantage as we compete for design wins. Altera is the design-win value leader at 28 nm."
A Look Back: Gross margins grew to 69.3% last quarter, a 1.2 percentage points difference from the year-earlier quarter. This breaks a streak of two consecutive quarters of shrinking margins.
Net income has dropped 27.8% year-over-year on average across the last five quarters. Performance was hurt by a 48.3% decline in the first quarter from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the fourth quarter is 48 cents per share, up from 47 cents 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $1.79 per share, a rise from $1.68 90 days ago.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Altera managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported 49 cents per share versus the 46 cents per share estimate and revenues of $495 million versus the $445.2 million estimate. Revenue fell 5.3% from the same period last year while EPS is down 14%. Revenue has fallen in the past four quarters. The company's net income for the quarter was $157.5 million. This is a 15.1% decline from last year.
Management Quote: "Despite uneven global economic conditions, Altera experienced relatively broad vertical market sequential growth with both our new and mainstream product categories performing well," said John Daane, president, chief executive officer, and chairman of the board. "Our 28 nm opportunity pipeline exceeds that of any prior process node as FPGAs continue to displace ASICs. Altera is the only 28 nm FPGA supplier to offer production-qualified devices across our entire range of product families, which gives us clear advantage as we compete for design wins. Altera is the design-win value leader at 28 nm."
A Look Back: Gross margins grew to 69.3% last quarter, a 1.2 percentage points difference from the year-earlier quarter. This breaks a streak of two consecutive quarters of shrinking margins.
Net income has dropped 27.8% year-over-year on average across the last five quarters. Performance was hurt by a 48.3% decline in the first quarter from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the fourth quarter is 48 cents per share, up from 47 cents 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $1.79 per share, a rise from $1.68 90 days ago.
by
Investopedia Staff
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