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NSM Top Line AND Bottom Line Better than Expected ?

|Includes:National Semiconductor Corporation (NSM)
NSM beat on the top and bottom and projected a better top line for next quarter.

So how about bottom line for next quarter?
We heard :
1- top line will at par par with current quarter and MARGIN will be about the same.
BUT TWO QUARTERS ( from Nov.), expect 300 points better!!!

2- Consensus bottom line was 14c for 2Q and they came in at 20C! So we should expect at least 20c next quarter - not the current 14c estimates!

3- In 2Q, they had $28M of re-org cost. They said that plant closing will be $5-6m. Does this mean reorg cost will be $23M less? Was there an implied LESS re-org cost... Do not know. May be someone can comment.

4 - Revenue Growth with a more aggressive margin was on NEW BUSINESS where the factory cost are already sunken in. The comments made on more aggressive price was related on new products in a different line of products ( for example LED LIGHTS for CARS, or SMART PHONES)... Areas where they got $15M ( out of $340M rev) and expect to triple revenue.
The margin comments were specific to new business lines, not current products.

At this rate, FY ( April 2010) earnings will be 20c HIGHER than consensus.
80c total anyone from the current 59 consensus?  Tell us your thoughts.

In 2011, interests will be lower( will pay back some $300m bonds) ;
margins better by 300 points after reorg is done,
and NEW PRODUCT LINES will kick in
$1.20 earnings per share anyone?

Put a  growth P/E on this and this is a steal here. 


Disclosure: Long
Stocks: NSM-RETIRED