Linear Technology CorporationNASDAQ
Linear Technology's Opportunities, And Challenges, Remain The Same
Stephen Simpson, CFA
Stephen Simpson, CFA
Wed, Nov. 16, 1:38 PM
Thu, Oct. 20, 8:57 AM
- July 28: Linear Technology to sell for $60 per share in Analog Devices buyout
- Transaction expected to conclude in H1 2017.
- Linear Technology (NASDAQ:LLTC), reacting more sharply subsequent the arrangement, is up 22% since it was first disclosed, while Analog Devices (NYSE:ADI) is up around 2% on the same term.
Tue, Oct. 18, 5:01 PM
Mon, Oct. 17, 5:35 PM
Fri, Aug. 19, 11:43 AM
- The chip sector is hot but no name is hotter than Advanced Micro Devices (AMD +10.9%). The company has been gradually rising since last August and has really hit its stride since returning to Y/Y revenue growth for the first time since 2014 in Q2.
- The only company remotely in the ballpark of this type of growth is Nvidia (NVDA +0.4%) with a now 170% increase over the last year.
- Comparably, Intel Corporation (INTC +0.5%) is up slightly over 23%, Micron Technology (MU +3.7%) around 2%, Applied Materials (AMAT +6.7%) nearly 80%, Analog Devices (ADI +0.4%) around 10%, ARM Holdings (ARMH -0.8%) around 56%, Linear Technology (LLTC +0.1%) around 46%, NXP Semiconductors (NXPI +1.2%) around 2%, Marvell Technology (MRVL +3.9%) slightly over 1%, Qualcomm (QCOM -0.4%) around 2.5%, Broadcom (AVGO +0.5%) around 26% and Texas Instruments (TXN +0.3%) around 43% for the same period.
- Advanced Micro Devices shares continues to increase following this week's operational-reveal of the company's highly anticipated Zen-core processors.
Wed, Jul. 27, 9:09 AM
- via Oppenheimer:
- "We are raising estimates and upgrading ADI (NASDAQ:ADI) from Perform to Outperform following its surprise acquisition of LLTC for $60/share in cash/stock.
- "The 26% premium values LLTC at $14.8B.
- "In LLTC, we believe ADI is gaining a premier asset in the group. LLTC boasts industry-leading CF/BS/P&L metrics, including GM/OM/FCF profiles better than 75%/50%/45%, respectively.\
- "Strategically, the combination of ADI's dominant converter franchise with LLTC's power management expertise makes sense and appears highly complementary. Furthermore, the deal lowers ADI's ~17% consumer exposure. LLTC is 90%-plus exposed to the sticky, high-margin industrial/auto/networking segments. The deal is 10% accretive at its close, and we believe at least 20% accretive once synergies kick in."
- New price target is $80, implying upside of 27%.
- Oppenheimer analyst Rick Schafer is ranked #26 out of 4,083 analysts by TipRanks.
Tue, Jul. 26, 4:06 PM
Tue, Jul. 26, 3:46 PM
Tue, Jul. 26, 3:07 PM
Tue, Jul. 26, 2:51 PM
- The report cites a confirmed deal could come as soon as today, though so far final terms have not been reached.
- Linear Technology (LLTC +28.9%) reports quarterly results today after market close.
- Analog Devices (ADI +3.8%) shares are up more than 19% since late June and with this news, Linear Technology's are up more than 41% for the same period.
- CNBC: Analog Devices and Linear Technology shares are presently halted.
Mon, Jul. 25, 5:35 PM
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Tue, Apr. 19, 5:01 PM
- Linear Technology (NASDAQ:LLTC): Q1 EPS of $0.52 beats by $0.02.
- Revenue of $361.25M (-2.9% Y/Y) beats by $1.94M.
Tue, Apr. 19, 10:50 AM
- Amid a weak market in both PCs and handsets, Citigroup is expressing caution on semiconductor stocks that it says could decline 20% in the next few months, while still seeing glimmers of light.
- The automotive end market should be strongest, analyst Christopher Danely says, leading him to sector favorites Microchip Technology (MCHP +0.1%) and ON Semiconductor (ON +0.5%), along with Linear Technology (LLTC -0.6%) -- each of which has a heavy component of sales in automotive (in ON Semi's case, 33% of calendar-year sales).
- Ahead of today's earnings, Intel (INTC -0.1%) gets a note of caution. Citi's Jim Suva says PCs will decline 6% this year, worse than Intel's forecast.
- Meanwhile, strong Samsung shipments are good for Maxim Integrated Products (MXIM -1.1%), but an overall weak handset market plays to Apple's supply chain. Together, PCs and handsets make up some 50% of the semicondutor market.
- Now read Intel Looks Vulnerable »
Mon, Apr. 18, 5:35 PM
Fri, Mar. 4, 5:51 PM
- Following a rough 2015 in which weak PC demand, slowing smartphone growth, plunging memory prices, and a late-year inventory correction all weighed, Wells Fargo's David Wong thinks a chip industry recovery is on the way.
- His rating for the sector has been upped to Overweight from Market Weight, and his ratings for Micron (NASDAQ:MU), Analog Devices (NASDAQ:ADI), and Microsemi (NASDAQ:MSCC) in particular have been raised to Outperform. Outperform ratings are reiterated for Intel (NASDAQ:INTC), Qualcomm (NASDAQ:QCOM), Linear (NASDAQ:LLTC), AMD, Xilinx (NASDAQ:XLNX), and SunEdison Semi (NASDAQ:SEMI).
- Wong argues 2016 chip industry growth could be as high as 7%
(with growth reaching double-digits by year's end), and that 8%-14% growth is possible in 2017. Gartner estimates industry revenue fell 1.9% in 2015 to $333.7B.
- Wong: "Over the last 5 years 2010-2015, semiconductor industry growth has tracked below global GDP for the most part. We think this has created significant pent-up demand created by the deferral of electronics goods purchases and aging of the installed base of electronics systems ... We think that there could well be the first signs of improvement in the year/year comparisons at some point in the June 2016 quarter in the many of the broader chip markets, including the industrial, communications infrastructure and PC markets."
- Some expectations for a recovery might already be priced in: The Philadelphia Semi Index (NASDAQ:SOXX) is up 18% from a February low of $74.80. However, it's still down 13% from a June high of $101.80.
- Earlier today, Broadcom (the company produced by the Avago/Broadcom merger) posted big gains after beating January quarter estimates and issuing healthy April quarter guidance. On its earnings call, Broadcom forecast solid April quarter growth for its wired infrastructure (telecom/networking chip) segment, and a 2H16 recovery for its mobile chip segment (recently hurt by soft iPhone-related demand). More cautious outlooks were provided for Broadcom's storage and industrial segments.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Tue, Mar. 1, 12:27 PM
- Citing expectations for a more modest cyclical demand recovery and believing there's limited room for multiple expansion, BofA/Merrill's Vivek Arya has downgraded Linear Technology (LLTC -3.3%) to Underperform, and cut his target by $2 to $44.
- Shares are lower on a day the Nasdaq is up 2.2%. Linear currently goes for 19x an FY17 (ends June '17) EPS consensus of $2.17. The dividend yield is at 2.9%.
- Six weeks ago: Linear outperforms after FQ2 EPS beat, solid FQ3 guidance, dividend hike