Linear Technology Corp.
) is set to report second-quarter fiscal 2014 results on Jan 14.
Last quarter, it posted a 4.4% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
The company's first-quarter earnings exceeded the Zacks
Consensus Estimate by a couple of cents due to higher volumes.
Revenues of $340.4 million were up 1.6% year over year and at the
higher end of management's guidance range, led by improved sales
in the automotive and industrial markets.
Also, the first quarter was strong for Linear Technology in
terms of margin growth. This was mainly due to favorable mix and
However, the company provided cautious second-quarter
guidance, with revenues expected to be flat to down 4%
sequentially. Also, the budgeting stalemate at the Federal
Government level could hurt results, indicating weak revenues in
the upcoming quarter.
Our proven model does not conclusively show that Linear
Technology will beat earnings this quarter. That is because a
stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here, as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 44 cents. Hence, the difference is 0.00%.
Zacks Rank #4 (Sell):
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
You could consider other stocks with a positive earnings ESP
and a Zacks Rank #1, 2 or 3 such as:
Helmerich & Payne, Inc.
), with Earnings ESP of +4.17% and a Zacks Rank #1 (Strong
Western Digital Corporation
), with Earnings ESP of +1.93% and a Zacks Rank #.
First Interstate Bancsystem Inc.
), with Earnings ESP of +6.52% and a Zacks Rank #1.
FIRST INTST MT (FIBK): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
LINEAR TEC CORP (LLTC): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
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