Earnings Preview: Altera

| About: Altera Corporation (ALTR)

Altera (NASDAQ:ALTR) is expected to report Q1 earnings after market close Wednesday with a conference call scheduled for 5:00 pm EST.


The consensus estimate is 23c for EPS and $326.46M for revenue, according to First Call. On March 3, Altera confirmed its previous guidance for Q1 sales flat to up 2% sequential sales growth, in-line with prior guidance. That is roughly the same as competitor Xilinx's (NASDAQ:XLNX) guidance of down 1% to up 3% sequentially. Altera had said their new product category is showing solid growth in comparison to the similar period in the prior quarter, led by Stratix II FPGAs, the company's largest-selling product family.

Analyst Views

Cowen this morning previewed the quarter, expecting results roughly in line with the firm's estimates and management's reaffirmed guidance. Additionally, Cowen believes the company will likely offer guidance roughly in line with the firm's and Street consensus expectations. However, they continue to believe that the stock will not enjoy any substantial appreciation until growth from the communications market returns to normal. Therefore, heading into the June quarter Cowen maintained its Neutral rating.

Key issues for the conference call

Investors expect to hear more commentary from Altera on its joint R&D program with Taiwan Semiconductor to transition its products onto 45nm process technology, and obviously forward guidance from the company.