Earnings Preview: Altera

| About: Altera Corporation (ALTR)

Altera (NASDAQ:ALTR) is expected to report Q3 earnings Tuesday Oct. 14 after market close, with a conference call scheduled for 4:45 pm ET.


The consensus estimate is 30c for EPS and $354.82M for revenue, according to First Call.

Analyst Views

Cowen expects Altera to report Q3 results roughly in-line with their estimates and management's reaffirmed guidance from Sept.2, of flat to down 3% sequentially which at the midpoint, is marginally lower than competitor Xilinx's (NASDAQ:XLNX) guidance of down 3% to up 1% sequentially. Consistent with management's Q3 guidance from its last earnings call, Cowen expects communications to be slightly down sequentially, which is in-line with normal seasonality. The firm also expects computing to be down, industrial to be flat to down, but consumer which consists of broadcast and displays to grow.

Looking forward to Q4, Cowen believes management's initial expectation given on the last earnings call in July, of growth across the communication market sub-segments (networking ~8% of revs, telecom ~16% of revs, & wireless ~16% of revs ) is at risk due to a more uncertain macro-economic environment than it was some few months ago. Cowen's recently lowered Q4 revenue estimate is $359.6M, or up 0.9% QoQ, and EPS of 30c. First Call consensus estimate is $361.06M and 29c. Given the uncertain macro environment which could negatively impact Altera's high exposure to communications, which is approximately 42% of revenues, the firm remains cautious on the shares, with a Neutral rating