Altera Corp. – Growth And Income – Zacks Rank Buy
Source: http://www.zacks.com/commentary/11375/Altera+Corp.+-+Growth+And+Income+-+Zacks+Rank+BuyPosted on Wednesday, July 1st, 2009 | In Market Commentary, Stocks to Watch
Altera Corp. (ALTR) is seeing upbeat earnings forecasts ahead of reporting in mid-July. The company also boasts a solid record of beating estimates, dating back to 2004.
Company Description
Altera provides innovative custom logic solutions and has been ever since inventing the world’s first reprogrammable logic device in 1984.
Altera’s comprehensive solutions portfolio contains fully integrated software development tools, versatile embedded processors, optimized intellectual property (IP) cores, reference designs examples, and a variety of development kits.
Bullish Forecasts
In early June, the company reaffirmed its revenue guidance, noting that second-quarter sales are projected to increase by 2% to 7% sequentially. Altera added that its new products, the 65-nanometer devices and 40-nanometer devices, have been the company’s growth drivers during the second quarter
Analysts are forecasting second-quarter earnings of 16 cents per share, versus estimates of 14 cents 3 months ago.
Wall Street is calling for full-year earnings of 67 cents per share, which is above last month’s 66 cents. For the following year, Street estimates of 89 cents were increased from last month’s 88 cents.
The company’s second-quarter report is scheduled for release on July 14, 2009.
A Strong First Quarter
Altera’s first-quarter earnings of 17 cents per share topped the consensus estimate by 6%. During the past 4 straight quarters, earnings came in, on average, 9.37% ahead of analysts’ forecasts.
Dating back to September 2004, the company’s earnings were below analysts’ expectations only twice, matched forecasts 3 times and exceed the estimates during all the other quarters.
Favorable Industry Comparisons
Altera offers a return on equity (ROE) of 39%, well ahead of the industry average of 0.42%. The company’s net profit margin stacks up well against a negative industry average reading. The Growth and Income pick pays am industry-leading dividend yield of 1%.
Last 5 posts by Alex Kolb
- Crane Co. - Growth And Income - Zacks Rank Buy - November 20th, 2009
- Gap Inc. - Growth And Income - Zacks Rank Buy - November 19th, 2009
- Costco Wholesale Corporation - Growth And Income - Zacks Rank Buy - November 18th, 2009
- Casey's General Stores - Growth And Income - Zacks Rank Buy - November 17th, 2009
- Avon Products - Growth And Income - Zacks Rank Buy - November 16th, 2009
Altera, cent;, integrated software development tools;, logic solutions;, Market Commentary, reprogrammable logic device;, Stocks to Watch, The Macro Trader, versatile embedded processors;, wall street, Zacks Market Commentaries
 About Alex Kolb (http://www.zacks.com/)
Alex Kolb is an Editor at Zacks Investment Research. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.