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Ahead Of The Bell: Analyst Upbeat On Linear

The Associated Press

NEW YORK (AP) — Linear Technology Corp. may still be able to meet earnings expectations for the current quarter and begin growing sales again despite mixed fiscal third-quarter results, a Thomas Weisel analyst said Wednesday.

The Milpitas, Calif., chip maker said Tuesday that earnings for the third quarter ended March 29 came to $54.5 million, or 25 cents per share. That topped the average analyst estimate of 21 cents, according to Thomson Reuters.

Sales fell by about a third, however, to $200.9 million, missing the average Street view of $203.1 million.

Thomas Weisel analyst Tore Svanberg told clients in a note late Tuesday, "We believe there is high probability that the company will achieve growth resumption in the quarter."

Svanberg said the company's outlook for the current quarter was below his expectation.

Linear said it expects its sales decline to slow markedly, but it projected a 2 percent to 4 percent sequential decline from the third quarter.

However, Svanberg said tight cost controls could help the company post earnings per share of 20 cents to 24 cents in the fourth quarter. Analysts are looking for 22 cents, on average.

In premarket trading, Linear shares fell 84 cents, or 3.6 percent, to $22.41.