Tom Reese/Paul Rubillo, Dividend.com
Integrated circuits maker Linear Technology Corporation (LLTC) said Tuesday that its third quarter profit fell 45% from the previous year.
The Milpitas, California-based company said its fiscal third quarter net income was $54.5 million, or 25 cents per share, compared to $99.2 million, or 44 cents per share, in the year-ago period. Revenue for the quarter fell to $200.9 million from $297.9 million.
On average, Wall Street analysts expected earnings of 21 cents per share on revenue of $204.3 million.
Linear said that it expects fourth-quarter revenue to rise between 2% and 4% above its third-quarter revenue, while Wall Street analysts expect the company to post revenues of $206.5 million, on average. The company said it cut about 130 jobs after the fiscal third quarter, and still sees a high level of ''uncertainty'' in the markets as it navigates through the fourth quarter.
Linear Tech shares fell 95 cents, or -4.09%, in Wednesday morning trading.
The Bottom Line
We had removed shares of LLTC from our ''Recommended'' list back on August 22, when the stock was trading at $32.89. The company has a 3.78% dividend yield, based on last night's closing stock price of $23.25. The stock has technical support in the $14-17 price area. If the shares can firm up and begin to move higher, we see initial overhead resistance around $25-27. We would remain on the sidelines for now.
Linear Technology Corporation (LLTC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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