Zacks Investment Research downgraded shares of ALTERA CORPORATION (ALTR) from NEUTRAL to UNDERPERFORM on November 02, 2012, with a target price of $28.00.
Altera recently reported better-than-expected third quarter results. The company reported a net income of $0.49 per share in quarter, easily beating the Zacks Consensus Estimate of $0.46 per share. However, earnings estimates for 2012 and 2013 were on the downside after the third quarter results. Although the third quarter results were better than our expectations, the guidance for the fourth quarter was disappointing. Management expects a sequential decline of 1% to 5% due to the general softness in all major market segments, driven by the weak global economic environment. Margins have already peaked and it might not be sustainable in the long run. Hence, owing to the macroeconomic weakness, we downgrade our recommendation to Underperform from Neutral.
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