Altera Earnings: Here’s Why Investors Don’t Like These Results
Altera Corp. (NASDAQ:ALTR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.06%.
Altera Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 5.71% to $0.37 in the quarter versus EPS of $0.35 in the year-earlier quarter.
Revenue: Rose 6.97% to $410.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Altera Corp. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.33. It missed the average revenue estimate of $413.75 million.
Quoting Management: “The quarter’s overall sales were roughly as expected and represent the low point in the recent communications equipment and industrial cycles. We expect second quarter growth in these markets,” said John Daane, president, chief executive officer, and chairman of the board. “Development work for our next generation products is well under way. Using TSMC’s 55 nm EmbFlash and their 20 nm planar technology plus Intel’s 14 nm Tri-Gate process, we expect to have an optimized, competitively differentiated set of offerings, with notable performance improvements across all our products. As the only major FPGA company with access to the second-generation Tri-Gate process, we will benefit from much reduced implementation risk, the unique finFET power, performance and density advantages, and process availability long before any comparable alternative.”
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