After the close last night, Linear Technology Corporation (LLTC - 33.12) unveiled fiscal second-quarter earnings of $87.9 million, or 38 cents per share, down 39% from $143.7 million, or 62 cents per share, in the year-ago quarter. Excluding items, profit came in at 45 cents per share. Revenue decreased 23% to $294.3 million. However, the Milpitas, Calif.-based company's results topped analysts' expectations for a profit of 39 cents per share on $293.1 million in revenue.
Looking ahead, LLTC forecasts third-quarter revenue of $306 million to $318 million, besting the consensus estimate of $302 million. The semiconductor designer also raised its quarterly dividend by 4% to 25 cents per share.
Following these better-than-expected results and strong outlook, FBR lifted its price target for LLTC to $30 from $27.
There could be additional target hikes in store for the stock, as Thomson Reuters places the consensus 12-month price target at $31.92, which represents a discount to today's intraday peak of $33.28. Moreover, Zacks reports that 59% of analysts following LLTC have pegged it with a "hold" or worse rating, leaving plenty of room for fresh upgrades should the shares exceed expectations.
Elsewhere on Wall Street, short interest decreased 9.2% during the most recent reporting period. Nevertheless, the remaining shorted shares would take over four sessions to unwind, at LLTC's average pace of trading, which could translate into a fresh source of buying pressure for the security.
Technically speaking, LLTC has jumped more than 10% so far today, erasing its fractional year-to-date loss. However, the stock remains south of the $33.50 level, which capped rally attempts by the stock in July and October 2011.
In light of LLTC's post-earnings rally, an unwinding of skepticism among the shorts or bearish analysts could help the tech issue to muscle atop this level in the near term.
The One Overseas Market That's Trending Higher in 2014
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.