National Semiconductor Q1 Profit Beats View, but Weak Forecast Sends Shares Plunging (NSM)

Share |

Microchip maker National Semiconductor Corporation ( NSM ) late Thursday said its fiscal first quarter profit nearly tripled from last year, but its sluggish sales forecast sent its shares lower in premarket trading Friday..

The Santa Clara-based company reported fiscal first quarter net income of $89 million, or 36 cents per share, compared with just $30 million in the year-ago period.

Revenue surged 31% from last year, to $412 million.

On average, Wall Street analysts expected a smaller profit of 34 cents per share, albeit on higher revenue of $415 million.

Looking ahead, the company said it expected second quarter sales to be flat to down 5% from the first quarter.

National Semiconductor shares fell 75 cents, or -5.8%, in premarket trading Friday.

The Bottom Line
We have avoided shares of NSM since our early June 2008 coverage began, when the stock traded at $23.74. The company has a 3.10% dividend yield, based on last night's closing stock price of $12.90. The stock has technical support in the $10 price area. If the shares can rebound, we see overhead resistance around the $14-$15 price levels. We would remain on the sidelines for now.

National Semiconductor Corporation ( NSM ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by

This article appears in: Investing , Stocks

Referenced Stocks: NSM

More from

Related Videos




Most Active by Volume

  • $15.94 ▲ 0.57%
  • $110.37 ▼ 1.75%
  • $11.94 ▲ 10.66%
  • $24.53 ▲ 0.37%
  • $103.39 ▼ 0.49%
  • $10.13 ▲ 2.32%
  • $29.08 ▲ 1.68%
  • $7.30 ▲ 3.84%
As of 9/3/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by