Chip maker National Semiconductor Corporation (NSM) said late Thursday that its first quarter profit plunged 63% from last year on lower revenue, but results still beat estimates.
The Santa Clara-based company reported fiscal first quarter net income of $29.8 million, or 13 cents per share, down from $79.6 million, or 33 cents per share, in the year-ago period.
Revenue plummeted 32% from last year to $314.4 million.
On average, Wall Street analysts expected lower profits of 7 cents per share, on smaller revenue of $300.5 million.
Looking ahead, National Semi predicted second quarter sales of $325 million to $340 million, which tops analyst expectations for $315.9 million.
National Semi shares fell 78 cents, or -4.9%, in morning trading Friday.
The Bottom Line
We have avoided shares of NSM since our early June coverage began last year, when the stock traded at $23.74. The company has a 2.00% dividend yield, based on last night’s closing stock price of $15.97. The stock has technical support in the $12-$13 price area. If the shares can rebound, we see overhead resistance around the $18 price level. We would remain on the sidelines for now.
Related Stories
