Earnings Preview: Semiconductors Cree and Linear Technology Report Tuesday

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Includes: CREE, LLTC
by: Robert Weinstein

Cree, Inc. (NASDAQ:CREE) is scheduled to release last fiscal quarter's results after the closing bell on January 17, 2012.

Cree, Inc. develops and manufactures light emitting diodes (LEDs), LED lighting, and semiconductor solutions for wireless and power applications. The company was founded in 1987 and is based in Durham, North Carolina. Cree trades an average of 2.7 million shares per day.

52 Week High: $56.78
52 Week Low: $20.25
Book Value: $21.55
Float Short: 13.42%

Analysts are expecting an improvement of $0.01 in earnings per share compared to last quarter's results of $0.25. Investors will be looking to see a number north of $0.26 per share, based on the earnings estimates.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $987.62 million for 2011 vs. $867.29 million for 2010. The bottom line has falling earnings year-over-year of $146.50 million for 2011 vs. $152.29 million for 2010. The company's earnings before interest and taxes are falling, with an EBIT year-over-year of $168.71 million for 2011 vs. $197.78 million for 2010.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for CREE

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 268.54 M $ 268.98 M $ 0.44 M 0.16%
Jun-11 $ 233.36 M $ 243.03 M $ 9.67 M 4.14%
Mar-11 $ 217.43 M $ 219.17 M $ 1.74 M 0.8%
Dec-10 $ 276.99 M $ 256.98 M $ -20.01 M -7.22%
Sep-10 $ 277.65 M $ 268.44 M $ -9.21 M -3.32%

M = millions, B = billions
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results CREE Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for CREE:

paid2trade.com short interest tool. The total short interest number of shares for CREE

The number of days to cover short interest, based on average daily trading volume for CREE:

paid2trade.com number of days to cover short interest based on average daily trading volume for CREE

Linear Technology Corporation (NASDAQ:LLTC) is expected to report last fiscal quarter's results after the closing bell on January 17, 2012. Let's review how Linear Technology has performed in recent quarters.

Linear Technology Corporation, together with its subsidiaries, designs, manufactures, and markets various analog integrated circuits worldwide. The company was founded in 1981 and is based in Milpitas, California. Linear trades an average of 1.8 million shares per day.

52 Week High: $35.97
52 Week Low: $25.41
Book Value: $2.39
Float Short: 3.46%

On average, 15 analysts are expecting a drop of $-0.10 in earnings per share compared to last quarter's results of $0.49. A beat of $0.39 per share, will top the estimated per share earnings. Analyst estimates range between $0.35 and $0.42 per share.

Revenue year-over-year has increased to $1.48 billion for 2011 vs. $1.17 billion for 2010. The bottom line has rising earnings year-over-year of $580.78 million for 2011 vs. $361.34 million for 2010. The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $767.31 million for 2011 vs. $563.41 million for 2010.Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for LLTC

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 331.64 M $ 329.92 M $ -1.72 M -0.52%
Jun-11 $ 359.44 M $ 358.56 M $ -0.88 M -0.24%
Mar-11 $ 354.47 M $ 353.19 M $ -1.28 M -0.36%
Dec-10 $ 378.87 M $ 383.62 M $ 4.75 M 1.25%
Sep-10 $ 385.89 M $ 388.59 M $ 2.70 M 0.7%

M = millions, B = billions.
Differences are rounded.
Some onetime items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results LLTC Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for LLTC:

paid2trade.com short interest tool. The total short interest number of shares for LLTC

The number of days to cover short interest based on average daily trading volume for LLTC:

paid2trade.com number of days to cover short interest based on average daily trading volume for LLTC

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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