Seeking Alpha

Altera's FQ4 guidance below consensus, shares -4.9% AH

  • In addition to missing FQ3 revenue estimates, Altera (ALTR) is guiding for FQ4 revenue to be down 3% to up 1% Q/Q; that's worse than a consensus for 6% growth.
  • While archrival Xilinx (XLNX - down 0.7% AH) saw 10% Y/Y sales growth in the Sep. quarter, Altera saw a 10% decline, evidence of share loss. However, Xilinx's Dec. quarter Q/Q sales growth guidance (-2% to +2%) isn't far removed from Altera's.
  • An 18% Y/Y drop in telecom/wireless chip sales (41% of revenue) dinged Altera's FQ3. Industrial, military, and automotive chip sales (23% of total) rose 1%; networking, computer, and storage (19% of total) was flat, and "Other" (17% of total) was down 12%.
  • Book-to-bill was below 1. Opex rose 6% Y/Y thanks to moderate increases in R&D and sales/marketing spend. Gross margin was 68.2%, and is expected to be at 68.5% (+/- .5%) in FQ4.
  • FQ3 results, PR
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