Post-Earnings Highlights - Altera

LONDON, February 4, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Altera Corp. (NASDAQ: ALTR). On January 22, 2015, the company reported its Q4 FY14 and full-year FY14 financial results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Altera&d=04-Feb-2015&s=ALTR to read our free earnings review on Altera Corporation (Altera). During Q4 FY14 and FY14, the company's net sales increased 6% Y-o-Y and 12% Y-o-Y, respectively. President, CEO and Chairman of Altera, John Daane, stated that the company grew 12% in 2014, outpacing the semiconductor industry. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Altera&d=04-Feb-2015&s=ALTR

Earnings Overview 

During Q4 FY14, Altera's net sales increased to $479.87 million from $454.37 million in Q4 FY13. The company's net sales in Q4 FY14 were below Bloomberg analysts' forecasts of $480.65 million. For Q4 FY14, Altera's net sales in Telecom and Wireless market segment grew 10% Y-o-Y, while its Industrial Automation, Military & Automotive market segment reported a 7% Y-o-Y rise in net sales. Additionally, net sales from other market segment grew 13% Y-o-Y. However, the company's net sales from Networking, Computer and Storage market segment fell 11% Y-o-Y. Free research on ALTR can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Altera&d=04-Feb-2015&s=ALTR

For Q4 FY14, Altera's gross margin stood at 65.0%, compared to 68.3% in Q4 FY13. In the reported quarter, the company recorded net income of $111.13 million, or $0.36 per diluted share, compared to $98.93 million, or $0.31 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected net income of $108.50 million, or $0.35 per diluted share, in Q4 FY14.

In FY14, Altera recorded net sales of $1.93 billion, which was in line with Bloomberg's analysts forecast for the full year, but higher than FY13 net sales of $1.73 billion. During FY14, net sales in Altera's Telecom and Wireless and Industrial Automation, Military and Automotive market segments grew 21% Y-o-Y and 9% Y-o-Y, respectively. Moreover, the company's net sales in other market segment grew 14% Y-o-Y. However, net sales in the company's Networking, Computer and Storage market segment fell 8% Y-o-Y.

During FY14, the company's gross margin decreased to 66.4% from 68.4% in FY13. In FY14, Altera reported net income of $472.66 million, or $1.52 per diluted share, compared to net income of $440.07 million, or $1.36 per diluted share, in FY13. Analysts from Bloomberg had expected net income of $473.86 million, or $1.51 per diluted share, in FY14. Sign up and read the free analyst's notes on ALTR at:

http://get.Investor-Edge.com/pdf/?c=Altera&d=04-Feb-2015&s=ALTR

Altera generated a cash flow from operations of $666.22 million in FY14. During the reported quarter, the company repurchased approximately 4.3 million shares for approximately $151.5 million. Additionally, Altera's board of directors announced a quarterly cash dividend of $0.18 per share, which is payable on March 02, 2015 to its shareholders of record on February 10, 2015.

On December 31, 2014, Altera's current ratio stood at 6:1, while liabilities to equity ratio came at 3:4. Additional, the company reported trailing twelve months return on equity of 14% as on December 31, 2014.

Mr. Daane said that Arria 10 FPGAs, the company's first of Generation 10 products, are proving to be competitively quite strong with good design-win momentum and record opportunities to pursue. The company is entering the advanced stages of design for our high-end Stratix 10 FPGA, the industry's only 14 nanometer FinFET-based FPGA, with planned introduction later this year, he added. Visit Investor-Edge and access the latest research on ALTR at:

http://get.Investor-Edge.com/pdf/?c=Altera&d=04-Feb-2015&s=ALTR

For Q1 FY15, the company expects flat to (4%) sequential sales growth with gross margin of 65%, plus or minus 5%. Altera's management also expects research and development expense to be in the range of $112 - $116 million, while selling, general and administrative expense are expected to be in the range of $76 - $80 million, in Q1 FY15.

Stock Performance  

On the day following the earnings release, January 23, 2015, Altera's stock lost 2.64% to end the session at $34.26. Since then, the stock has moved both ways with losses outperforming gains. However, on the last close, Tuesday, February 03, 2015, the stock finished 1.79% higher at $34.06, after vacillating between $33.47 and $34.19. A total of 2.01 million shares were traded, which was below its three months average volume of 2.98 million shares. Over the past one year, Altera's shares have advanced 4.70%. However, the stock has lost 8.19% in the last one month and 1.99% in the previous three months. Shares in Altera closed below their 50-day and 200-day moving averages of $36.31 and $34.68, respectively. Furthermore, the stock traded at a PE ratio of 22.41 and has a Relative Strength Index (RSI) of 36.94.

Sneak Peek to Corporate Insider Trading 

In the last one month, Altera has reported only one corporate insider transaction to the U.S. Securities and Exchange Commission (SEC). On January 30, 2015, Jeffrey Waters, Senior Vice President and General Manager- Business Units at Altera, disposed 2,420 shares of the company, at a price of $32.93 per share and for a total value of $79,679. Complimentary in-depth research on ALTR is available at:

http://get.Investor-Edge.com/pdf/?c=Altera&d=04-Feb-2015&s=ALTR

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