NEW YORK (TheStreet) -- Shares of Linear Technology Corporation (LLTC - Get Report) are trading higher 3.33% to $46.57 on Thursday after the company released its financial results for the third quarter of 2014.
The company, which designs, manufactures and markets a variety of analog integrated circuits for companies around the world, reported a 4% rise in quarterly revenue to $348 million from $334 million in the previous quarter.
Revenue for the third quarter rose 10.6% from the $314 million reported in the same quarter in 2013.
Net income of $117.6 million increased 6.0% over the third quarter of 2013.
Diluted earnings per share of $0.48 in the third quarter of fiscal year 2014 increased 9.1% over the second quarter of fiscal year 2014, and increased 4.3% over the third quarter of fiscal year 2013, the company said.
TheStreet Ratings team rates LINEAR TECHNOLOGY CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LINEAR TECHNOLOGY CORP (LLTC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LLTC's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.99% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LLTC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LINEAR TECHNOLOGY CORP has improved earnings per share by 15.8% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, LINEAR TECHNOLOGY CORP increased its bottom line by earning $1.72 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $1.72).
- The gross profit margin for LINEAR TECHNOLOGY CORP is currently very high, coming in at 79.16%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.30% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 69.27% to $169.04 million when compared to the same quarter last year. In addition, LINEAR TECHNOLOGY CORP has also vastly surpassed the industry average cash flow growth rate of -9.91%.
- You can view the full analysis from the report here: LLTC Ratings Report