National Semiconductor’s Q2 Profit Beats, but Forecast Falls Short (NSM)


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Microchip maker National Semiconductor Corporation ( NSM ) late Thursday posted better-than-expected fiscal second quarter profits, but its tepid sales forecast sent its shares lower in aftermarket trading.

The Santa Clara-based company reported fiscal second quarter net income of $83.5 million, or 34 cents per share, compared with $47 million, or 20 cents per share, in the year-ago period.

Revenue rose 13% from last year to $390 million.

On average, Wall Street analysts expected a smaller profit of 32 cents per share, albeit on higher revenue of $399 million.

Looking ahead, the company predicted an 8% to 12% decline in third quarter sales compared with the second quarter, while analysts were looking for a much smaller 4% decline.

National Semiconductor shares fell 85 cents, or -5.7%, in premarket trading Friday.

The Bottom Line
Shares of National Semiconductor ( NSM ) have a 2.67% dividend yield, based on last night's closing stock price of $14.97. The stock has technical support in the $12-$13 price area. If the shares can firm up, we see overhead resistance around the $16-$18 price levels.

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 Nasdaq, Inc.

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