In addition to Intel Corp.'s (NASDAQ: INTC) third quarter earnings release, chip makers Altera Corp. (NASDAQ: ALTR) and Linear Technology Corp. (NASDAQ: LLTC) are expected to post results Tuesday after the market closes as well. (Also see our Intel earnings preview.)
For the three months that ended in September, analysts surveyed by Thomson Reuters expect Altera to report that its net income fell 38.7% from a year ago to $0.19 per share. Revenue for the period is expected to be 20.6% lower to $283.3 million, which is in line with recently raised guidance. Altera has met or topped earnings estimates in the past five quarters, beating by as much as a nickel per share. The long-term EPS growth forecast is 14.4%, which is better than that of competitors Intel and Texas Instruments Corp. (NYSE: TXN).
And for its third quarter, Linear is expected to post earnings that are 50.0% lower than a year ago to $0.24 per share. The revenue forecast is for $215.9 million, down 30.4% from a year ago. Linear's earnings have been better than expected in the past five quarters, beating by as much as nine cents per share. The long-term EPS growth forecast is 14.8%, which is not only better than that of Intel, but also of National Semiconductor Corp. (NYSE: NSM).
The First Call consensus recommendations are to buy ALTR and hold LLTC.
Shares of both Altera and Linear reached 52-week highs on Monday ahead of their earnings reports, on the rebound in the industry and expectations for Intel.
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