Q2 Preview: Will National Semi (NSM) Continue Positive Tech Earnings Trend?
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National Semiconductor Corporation (NYSE: NSM) is trading higher this afternoon, ahead of the company's second quarter earnings release, expected out after the market closes today. Shares are up 1.4% on moderate volume.
Nat Semi is expected to report an EPS of $0.32 on revs of $399.46 million. Last quarter, the company posted an EPS of $0.36 with revs of $412 million, mixed to the consensus calling for an EPS of $0.35 on revs of $414.5 million. For Q210, NSM made a strong showing, with an EPS of $0.20 and revenues of $345 million beating views.
The stock gained 4.6% through the quarter, to $13.35 at the end of November. Shares are currently up 11.8% since then, but down 0.9% on the year.
A simple valuation pegs NSM at a forward P/E of 11.1x FY12 EPS estimates, compared to 13.7x for Analog Devices Inc. (NYSE: ADI), 14.4x for Maxim Integrated (Nasdaq: MXIM), and 13.3x for Texas Instruments (NYSE: TXN).
Data from Bloomberg has 6 analysts with a Buy on NSM, 10 with a hold, and six suggesting to Sell. The analyst price target average is $15, with a high of $20 and low of $10.
Analysts Through the Quarter
Susquehanna started with a Neutral rating and $14 price target in October.
In November, RBC Capital downgraded shares from Sector Perform to Underperform, with a $13 price target.
Summary
NSM sees Q211 revs of $390 - $415 million.
Goldman Sachs believes that NSM will be in-line with the Street and their own estimates. Results will be bolstered by stronger results in handsets, which will be offset by weaker distribution trends. Q311 guidance should also be in-line with the Street, though normal seasonality should be better. They are keeping their Sell rating for the time being, noting that fundamentals may continue to underperform peers. Goldman is expecting an EPS of $0.33 with revs of $399.6 million.
Deutsche Bank is looking for a report to the lower-end of guided range, based on marco conservatism and inventory reduction efforts. Deutsche is looking for an EPS of $0.30 and revs of $391 million, with gross margin carrying the most potential from incremental upside. DB pegs Q311 guidance at in-line or worse than normal seasonality and cyclical inventory adjustments persist.
Focus items will be macro demand, channel inventory, margins, and wireless.
Deutsche maintains a Buy with a $16 price target, noting that National Semi is stopping market share loss in H111 and is gaining share in H211.
National Semiconductor Corp. is expected to release their Q211 earnings on Wednesday, December 9, 2010, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
Nat Semi is expected to report an EPS of $0.32 on revs of $399.46 million. Last quarter, the company posted an EPS of $0.36 with revs of $412 million, mixed to the consensus calling for an EPS of $0.35 on revs of $414.5 million. For Q210, NSM made a strong showing, with an EPS of $0.20 and revenues of $345 million beating views.
The stock gained 4.6% through the quarter, to $13.35 at the end of November. Shares are currently up 11.8% since then, but down 0.9% on the year.
A simple valuation pegs NSM at a forward P/E of 11.1x FY12 EPS estimates, compared to 13.7x for Analog Devices Inc. (NYSE: ADI), 14.4x for Maxim Integrated (Nasdaq: MXIM), and 13.3x for Texas Instruments (NYSE: TXN).
Data from Bloomberg has 6 analysts with a Buy on NSM, 10 with a hold, and six suggesting to Sell. The analyst price target average is $15, with a high of $20 and low of $10.
Analysts Through the Quarter
Susquehanna started with a Neutral rating and $14 price target in October.
In November, RBC Capital downgraded shares from Sector Perform to Underperform, with a $13 price target.
Summary
NSM sees Q211 revs of $390 - $415 million.
Goldman Sachs believes that NSM will be in-line with the Street and their own estimates. Results will be bolstered by stronger results in handsets, which will be offset by weaker distribution trends. Q311 guidance should also be in-line with the Street, though normal seasonality should be better. They are keeping their Sell rating for the time being, noting that fundamentals may continue to underperform peers. Goldman is expecting an EPS of $0.33 with revs of $399.6 million.
Deutsche Bank is looking for a report to the lower-end of guided range, based on marco conservatism and inventory reduction efforts. Deutsche is looking for an EPS of $0.30 and revs of $391 million, with gross margin carrying the most potential from incremental upside. DB pegs Q311 guidance at in-line or worse than normal seasonality and cyclical inventory adjustments persist.
Focus items will be macro demand, channel inventory, margins, and wireless.
Deutsche maintains a Buy with a $16 price target, noting that National Semi is stopping market share loss in H111 and is gaining share in H211.
National Semiconductor Corp. is expected to release their Q211 earnings on Wednesday, December 9, 2010, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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