Altera's Shares Appear Too Beaten Up
Chipmaker offers investors solid growth and profitabilty at a decent price.
Chipmaker Altera (ALTR) reported quarterly earnings Monday evening of $0.28 per share, consistent with the First Call consensus estimate. The maker of programmable logic devices (PLDs) also reported top-line growth of 16% over the prior quarter and 84% over the same quarter last year.
What It Means for Investors
Although there wasn't much upside in Altera's quarterly results versus the Street's expectations, we do think that business is extremely healthy in most aspects. You wouldn't know it from looking at the company's stock, however. The shares have been hit hard in recent weeks over macroeconomic concerns, as well as concerns over Altera's competitive position. We believe these fears have been blown out of proportion, and that the beating the shares have taken provides a decent opportunity for aggressive investors.
Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.