Seeking Alpha

CIBC analysts Rick Schafer and Daniel Gelbtuch raised their calendar year revenue estimates for Linear Technology (LLTC) after LLTC announced higher Q2 profit on Tuesday. Highlights from LLTC's Q2 financials:

  • Revenue: $265.1 million, up from $250.1 million last year.
  • EPS: 36 cents per share, 1 penny higher than consensus estimates.
  • Next quarter sales to grow 5 percent to 6 percent in the third quarter compared to Q2 resulting from bookings growth in industrial, communications infrastructure, networking and auto markets.
  • Quarterly dividend increased by 50%, to 15 cents from 10 cents.
  • In a note to clients, CIBC raised CY06 ests to $1.58 and $1,163M (prior, $1.53/$1,142M) and introduced CY07 estimates of $1.78 and $1,320M. "At 24x our new CY06 estimates, LLTC trades inline with peers and a significant discount to historical multiple (ex-bubble) of 29x. We reiterate our Sector Outperformer rating and $45 price target."

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