National Semiconductor Q1 Profit Beats View, but Weak Forecast Sends Shares Plunging (NSM)
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 Dividend.com DARS™ Rating of 3.2 out of 5 stars.