Chipmaker Altera Corporation ( ALTR ) late Thursday lowered its fourth quarter revenue forecast, sending its shares plunging in aftermarket trading.
The San Jose, CA-based company said it now expects fourth quarter revenue to fall 13% to 16% from last year, which implies sales of around $454.6 million to $438.9 million. Previously, Altera had forecast a 7% to 11% decline.
On average, Wall Street analysts expect higher revenue of $474.8 million for the quarter.
The company, which is slated to report its fourth quarter results in January, noted that while North America demand remains strong due to military sales, demand will be weaker-than-expected in international regions.
Altera shares fell $1.88, or -5.3%, in premarket trading Friday.
The Bottom Line
Shares of Altera ( ALTR ) have a .90% dividend yield, based on last night's closing stock price of $35.48. The stock has technical support in the $31-$33 price area. If the shares can firm up, we see overhead resistance around the $38-$40 price levels.
Altera Corporation ( ALTR ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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