article from individualinvestor
by: qe3qw 9/2/00 12:13 am
Msg: 23202 of 23202
By Tom Byrne (9/2/00)
National Semiconductor (NYSE: NSM - Quotes, News, Boards)
National Semiconductor, located in Santa Clara, California, makes microprocessors for
personal computers and plus analog, mixed-signal and other integrated circuits.
Last quarter, I told investors that National Semiconductor would crush expectations and
the stock would run up on the news. It did and it did.
The company earned $0.68 per share last quarter, beating expectations by $0.06 per
share. The stock shot up two points on the news to $65.63. Since then, the stock has
drifted lower and is currently around $45.
National Semiconductor reported revenues of $595 million last quarter, a 22%
improvement year-over-year and 8% sequentially. Net income came in at $134 million,
compared to a loss of $40 million last year. Sales were led by strong demand for analog
and wireless devices, which helped the gross profit margin improve to 51%, up from 48%.
According to the company, "bookings significantly exceeded billings in all regions" during
the quarter. That means this quarter will be very strong too.
National Semiconductor had $400 million in positive cash flow last year, a whopping 76%
improvement over last year. Now the company is putting that cash to good use,
increasing its outlay on research and development, and not throwing it away on selling,
general and administrative or marketing costs.
Analysts are expecting earnings of $0.66 per share, a dramatic improvement over
breakeven results last year, but estimates are not high enough. National Semiconductor
has crushed estimates four quarters in a row because analysts have not properly gauged
the demand for analog chips. They will be wrong again this quarter. Look for earnings of
$0.70 per share and the stock to shoot up on the news.
individualinvestor.com |
