Programmable chip maker, Altera Corporation(ALTR) reported lowered guidance for their fourth quarter on Wednesday..
The company reported that they now expecting sales to decline by 8% to 10%, equaling approximately $450.5. ALTR’s previously estimated a decline of 6% to 10%. On average, analysts are expecting revenue of $455.2 million for Q4.
The primary customers of ALTR are manufacturers who produce everything from mobile phone towers, to routers, who use the company’s chips in their products. Due to customer spending cuts and decreased inventories, ALTR has seen a significant decline in sales.
Looking ahead, the company estimates gross margins in the range of 69% to 70%.
Altera shares were mostly flat during premarket trading Wednesday. The stock is down -13.05% YTD.
The Bottom Line
Shares of Altera Corporation (ALTR) have a 1.24% dividend yield, based on last night’s closing stock price of $32.18. The stock has technical support in the $29-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$35 price levels.
Altera Corporation(ALTR) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.