Nomura Securities Maintains a 'Neutral' on Linear Technology (LLTC); First Look at 3Q Results

Nomura Securities maintains a 'Neutral' on Linear Technology (NASDAQ: LLTC) price target of $27.00.

Nomura analyst, Romit Shah, said, "Linear reported FQ1 (Sept) revenue down 8% QoQ, and at the low end of guidance of down 6-8%. Non-GAAP EPS (incl. ESO) of $0.46 missed our estimate and consensus of $0.49 owing to lower gross margin. More importantly, Linear is guiding FQ2 revenue down 9-13% to $294mn, weaker than our estimate of $313mn (-5% q/q), which we reduced on 12 October, and consensus of $330mn. Normally the December quarter is up a few percent. Historically, we have found that Linear offers one of the best reads on end demand. Lead times are consistently short and the customer mix is extremely diverse. The December outlook was weak, and may likely set the tone for most analog (Maxim (Nasdaq: MXIM), TI (NYSE: TXN), Analog Devices (NYSE: ADI), Microchip (Nasdaq: MCHP)) and PLD (Alterra (Nasdaq: ALTR), Xilinx (Nasdaq: XLNX)) this earnings season."

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 $31.00 yesterday.

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