National Semiconductor Q3 Profit Surges, Beating View (NSM)

in ceo Gold Gold Investing by admin — March 12, 2010 7:00 am | no comments

Chip maker National Semiconductor Corporation ( NSM ) on Friday said its third quarter profit more than doubled from last year, helped by higher sales and lower costs. The Santa Clara-based company reported third quarter net income of $53.2 million, or 22 cents per share, compared with $21.1 million, or 9 cents per share, in the year-ago period. Revenue surged nearly 24% from last year, to $361.9 million. On average, Wall Street analysts expected a smaller profit of 18 cents per share, on lower revenue of $348.6 million National Semi CEO Don Macleod said in a statement that “Our sequential and year-on-year revenue growth demonstrates top-line improvement, driven by both our core analog business and traction in several new emerging areas.” National Semiconductor shares rose 46 cents, or +3.2%, in premarket trading Friday. The Bottom Line We have avoided shares of NSM since our early June 2008 coverage began, when the stock traded at $23.74. The company has a 2.23% dividend yield, based on last night’s closing stock price of $14.34. The stock has technical support in the $12-$13 price area. If the shares can rebound, we see overhead resistance around the $18 price level. We would remain on the sidelines for now. National Semiconductor Corporation ( NSM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .