Altera Corp. (ALTR) continues to post solid growth, and we believe this growth will be sustainable in the long run. As expected, Altera faced a minor inventory adjustment and a temporary slowdown in the wireless segment during the first quarter. However, results topped our expectations.
Earnings estimates for 2011 increased by $0.09 after the first quarter report. The industry-leading 40-nanometer product execution and the company’s ongoing efforts to improve operating efficiency remain the keys to long-term revenue growth.
We believe the company gained market share in 2010 from rival Xilinx Corporation. We find the stock attractive at current levels and, therefore, upgrade our recommendation to Outperform from Neutral.
ALTERA CORP (ALTR): Free Stock Analysis Report
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