Earnings Preview: National Semiconductor Corp.

Mar.11.10 | About: National Semiconductor (NSM)

National Semiconductor Corp. (NSM) is expected to report Q3 earnings after the market close on Thursday, March 11, with a conference call scheduled for 4:30 pm ET.

Guidance

The consensus estimate is 18c for EPS and $348.58M for revenue, according to First Call.

Analyst Views

Credit Suisse expects National Semi to deliver upside to Q3 expectations with revenue closer to $360M-$365M, which is up 4.5%-5.9% quarter-over-quarter, above guidance of "roughly flat" with Q2's reported $345M. Credit Suisse's forecast is for flat growth to $345M. The firm expects strength from industrials, approximately 40% of revenue, and communications, 12% of revenue, to offset seasonally weaker handsets, which is 30% of revenue. As a comparison, National Semi's analog/diversified peers have guided calendar Q1 to up 5% q/q, and Semiconductor Industry Association data suggests that seasonal m/m growth in February would drive analog revenue growth of 3.9% in National Semi's Q3. Potential revenue upside in Q3 suggests 3c-4c upside to Credit Suisse's and the Street's estimate of 18c. Looking forward: Credit Suisse expects National Semi to guide Q4 revenues up in-line with seasonal growth of 4%-5% q/q, off of a higher Q3 base, and above Credit Suisse's estimates of 22c on $360M. Consensus for Q4 is 21c on $360.89M in revenue. Upside could come from seasonal industrials strength and continued communications recovery coupled with lean inventories :