- JP Morgan notes they have been Neutral on Altera (NASDAQ:ALTR) stock due to concern that Altera's extended lead times earlier in the year might have led to double ordering, and it appears their fears are becoming realized. Firm also expects flattish sequential revenue growth for 4Q06
While their checks indicate the company experienced strong bookings in 3Q06 from the consumer and computing end markets (combined 23% of 2Q06 revenue), they believe the company experienced sluggish bookings in its communications and industrial segments (combined 77% of 2Q06 revenue).
As a result, the firm is lowering C06 revenue and EPS estimates from $1.31 billion and $0.78 to $1.30 billion and $0.76. They are also lowering C07 revenue and EPS estimates from $1.50 billion and $1.01 to $1.46 billion and $0.96.
ALTR is trading at 19X new C07 EPS estimate of $0.96, the low end of its historic range of 20X-35X EPS. Maintains Neutral.
Notablecalls: Not actionable but good to know category.
While their checks indicate the company experienced strong bookings in 3Q06 from the consumer and computing end markets (combined 23% of 2Q06 revenue), they believe the company experienced sluggish bookings in its communications and industrial segments (combined 77% of 2Q06 revenue).
As a result, the firm is lowering C06 revenue and EPS estimates from $1.31 billion and $0.78 to $1.30 billion and $0.76. They are also lowering C07 revenue and EPS estimates from $1.50 billion and $1.01 to $1.46 billion and $0.96.
ALTR is trading at 19X new C07 EPS estimate of $0.96, the low end of its historic range of 20X-35X EPS. Maintains Neutral.
Notablecalls: Not actionable but good to know category.
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