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