Linear TechnologyShares of Linear Technology ( LLTC) rose in late trades Tuesday after the chip maker topped Wall Street expectations with its latest quarterly results and gave an above-consensus revenue view for its fiscal third quarter. Milpitas, Calif.-based Linear reported non-GAAP earnings of $104.9 million, or 45 cents a share, for its fiscal second quarter ended Jan. 1 on revenue of $294.3 million. The average analysts' estimate was for a profit of 39 cents a share in the latest three-month period on revenue of $294.3 million. For its fiscal third quarter ending in March, Linear forecast sequential revenue growth of 4%-8%, which implies a range of $306.1 million to $317.9 million. Wall Street's current estimate is for revenue of $302 million in the quarter.
The stock was last quoted at $32.20, up 7.8%, on volume of more than 75,000, according to Nasdaq.com. Based on Tuesday's regular session close at $29.87, the shares were down more than 15% in the past year, scraping a 52-week low of $25.41 on Aug. 9. Linear also said it's increasing its quarterly dividend by 4% to 25 cents a share from 24 cents a share. That brings the forward annual yield on the shares to 3.3% before factoring in the after-hours move. "This was an encouraging quarter in a difficult global economic environment," said Lothar Maier, Linear's CEO, in a statement. "We met the mid point of our guidance and we believe that we are at an inflection point in our business. Bookings, which started slowly, strengthened in December and continued strengthening in January." Wall Street was skeptical on Linear ahead of the news with 14 of the 23 analysts covering the stock at either hold (11), underperform (2) or sell (1) and the 12-month median price target at $32.50.