FBR Capital Maintains an 'Underperform' on Linear Technology (LLTC); Results and Guidance Uninspiring
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Price: $65.00 --0%
Rating Summary:
1 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Underperform' on Linear Technology (NASDAQ: LLTC), PT lowered by $1 to $33.
FBR analyst says, "Linear reported somewhat sluggish calendar 1Q11 financial results and guided calendar 2Q11 revenues to grow 0%–3% QOQ, putting its new revenue guidance midpoint a couple points below prior Street estimates—rather uninspiring on the back of Intel's crushing beat-and-raise report. Indeed, calendar 1Q11 saw slight revenue and gross margin weakness versus our estimates, but a $0.06 tax benefit more than fully offset these items and drove EPS upside. Management said its book-to-bill ratio remained below 1.0 as customers adjusted inventories early this year, and that the firm has 15% revenue exposure to Japan with its automotive segment possibly affected by reduced production of cars. While bulls will likely point to longterm growth opportunities in industrial, automotive, and comm/networking, and industry-high margins, bears may argue that the firm is already well run with few operational improvement initiatives, that margins are near a peak, and that the firm walks away from too much business (Apple (Nasdaq: AAPL), among others) so that Linear may keep its margin structure intact. We find ourselves somewhere in the middle, apathetic on the stock given that Linear is not very expensive but also not very growthy, and given our view that other chip stocks offer more potential upside returns (ON Semi (Nasdaq: ONNN), Maxim (Nasdaq: MXIM), Fairchild (NYSE: FCS), Microsemi (Nasdaq: MSCC), Marvell (Nasdaq: MRVL))."
For more ratings news on Linear Technology click here and for the rating history of Linear Technology click here.
Shares of Linear Technology closed at $33.24 yesterday.
FBR analyst says, "Linear reported somewhat sluggish calendar 1Q11 financial results and guided calendar 2Q11 revenues to grow 0%–3% QOQ, putting its new revenue guidance midpoint a couple points below prior Street estimates—rather uninspiring on the back of Intel's crushing beat-and-raise report. Indeed, calendar 1Q11 saw slight revenue and gross margin weakness versus our estimates, but a $0.06 tax benefit more than fully offset these items and drove EPS upside. Management said its book-to-bill ratio remained below 1.0 as customers adjusted inventories early this year, and that the firm has 15% revenue exposure to Japan with its automotive segment possibly affected by reduced production of cars. While bulls will likely point to longterm growth opportunities in industrial, automotive, and comm/networking, and industry-high margins, bears may argue that the firm is already well run with few operational improvement initiatives, that margins are near a peak, and that the firm walks away from too much business (Apple (Nasdaq: AAPL), among others) so that Linear may keep its margin structure intact. We find ourselves somewhere in the middle, apathetic on the stock given that Linear is not very expensive but also not very growthy, and given our view that other chip stocks offer more potential upside returns (ON Semi (Nasdaq: ONNN), Maxim (Nasdaq: MXIM), Fairchild (NYSE: FCS), Microsemi (Nasdaq: MSCC), Marvell (Nasdaq: MRVL))."
For more ratings news on Linear Technology click here and for the rating history of Linear Technology click here.
Shares of Linear Technology closed at $33.24 yesterday.
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