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Linear Technology (LLTC) Hits 52-Week High on Strong Q3
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Shares of Linear Technology Corp. hit a new 52-week high of $47.74 on Jun 1, eventually closing at $47.67. The company returned 1.6% in the past one-year period and has added approximately 12.2% year to date. Average volume of shares traded over the last three months was roughly 2,187K.
What is Driving Linear Technology?
Linear Technology is a leading OEM of analog and mixed signal semiconductors. The company’s solid business model, excellent products, ability to generate strong operating cash flows and dividend yield should in combination drive Linear.
The price appreciation can be attributed to Linear’s strong fundamentals and better-than-expected fiscal third-quarter 2016 results reported on Apr 19. In response to strong earnings, the stock has gained 8.0%.
In the fiscal third quarter, Linear reported earnings of 52 cents, which beat the Zacks Consensus Estimate of 50 cents by 4%. Also, earnings increased 5.7% sequentially mainly backed by higher revenues.
Also, revenues of $361.1 million were above the Zacks Consensus Estimate and on the upper end of the company’s guided range. The increase was attributed to an improvement in sales in the Transportation and Industrial markets.
The company’s business is well diversified among core markets, including industrial, automotive and communications infrastructure. Moreover, the exposure to handset and consumer markets has also been lowered significantly to remove uncertainty. Given the diversity of end markets, seasonality is largely balanced and cost absorption is optimum. This is helping the company to generate steady and attractive margins. In the last reported quarter, gross margin was 76.2%, up 51 basis points (bps) sequentially and 16 bps year over year.
Also, Linear has an impressive record of returning cash to shareholders through share buybacks and regular dividends payouts. In the fiscal third quarter, the company spent $32.6 million on share repurchases and $78.2 million on cash dividends.
Additionally, Linear delivered an average positive earnings surprise of nearly 2.28% in the trailing four quarters. The Zacks Rank #3 (Hold) company’s solid market position in the analog market, its solid execution, continued innovation and strong long-term growth potential position it well.
Stocks to Consider
Some well-placed stocks in the technology space are CommVault Systems, Inc. (CVLT - Free Report) , DST Systems Inc. and Manhattan Associates, Inc. (MANH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Linear Technology (LLTC) Hits 52-Week High on Strong Q3
Shares of Linear Technology Corp. hit a new 52-week high of $47.74 on Jun 1, eventually closing at $47.67. The company returned 1.6% in the past one-year period and has added approximately 12.2% year to date. Average volume of shares traded over the last three months was roughly 2,187K.
What is Driving Linear Technology?
Linear Technology is a leading OEM of analog and mixed signal semiconductors. The company’s solid business model, excellent products, ability to generate strong operating cash flows and dividend yield should in combination drive Linear.
The price appreciation can be attributed to Linear’s strong fundamentals and better-than-expected fiscal third-quarter 2016 results reported on Apr 19. In response to strong earnings, the stock has gained 8.0%.
In the fiscal third quarter, Linear reported earnings of 52 cents, which beat the Zacks Consensus Estimate of 50 cents by 4%. Also, earnings increased 5.7% sequentially mainly backed by higher revenues.
Also, revenues of $361.1 million were above the Zacks Consensus Estimate and on the upper end of the company’s guided range. The increase was attributed to an improvement in sales in the Transportation and Industrial markets.
The company’s business is well diversified among core markets, including industrial, automotive and communications infrastructure. Moreover, the exposure to handset and consumer markets has also been lowered significantly to remove uncertainty. Given the diversity of end markets, seasonality is largely balanced and cost absorption is optimum. This is helping the company to generate steady and attractive margins. In the last reported quarter, gross margin was 76.2%, up 51 basis points (bps) sequentially and 16 bps year over year.
Also, Linear has an impressive record of returning cash to shareholders through share buybacks and regular dividends payouts. In the fiscal third quarter, the company spent $32.6 million on share repurchases and $78.2 million on cash dividends.
Additionally, Linear delivered an average positive earnings surprise of nearly 2.28% in the trailing four quarters. The Zacks Rank #3 (Hold) company’s solid market position in the analog market, its solid execution, continued innovation and strong long-term growth potential position it well.
Stocks to Consider
Some well-placed stocks in the technology space are CommVault Systems, Inc. (CVLT - Free Report) , DST Systems Inc. and Manhattan Associates, Inc. (MANH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>