National Semiconductor Q1 Profit Falls 63%, Still Beats View (NSM)

Chip maker National Semiconductor Corporation (NSM) said late Thursday that its first quarter profit plunged 63% from last year on lower revenue, but results still beat estimates.

The Santa Clara-based company reported fiscal first quarter net income of $29.8 million, or 13 cents per share, down from $79.6 million, or 33 cents per share, in the year-ago period.

Revenue plummeted 32% from last year to $314.4 million.

On average, Wall Street analysts expected lower profits of 7 cents per share, on smaller revenue of $300.5 million.

Looking ahead, National Semi predicted second quarter sales of $325 million to $340 million, which tops analyst expectations for $315.9 million.

National Semi shares fell 78 cents, or -4.9%, in morning trading Friday.

The Bottom Line

We have avoided shares of NSM since our early June coverage began last year, when the stock traded at $23.74. The company has a 2.00% dividend yield, based on last night's closing stock price of $15.97. 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.

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