Chipmaker Analog Devices (ADI) on Wednesday easily beat analyst estimates for its fiscal second quarter and guided higher for the current period. ADI stock rose sharply on the news.
The Wilmington, Mass.-based company earned an adjusted $1.54 a share on sales of $1.66 billion in the quarter ended May 1. Analysts expected Analog Devices to earn $1.45 a share on sales of $1.61 billion. On a year-over-year basis, Analog Devices earnings rose 43% while sales climbed 26%.
Record sales in the industrial and automotive markets fueled the company’s second-quarter beat.
For the current quarter, Analog Devices forecast adjusted earnings of $1.61 a share on sales of $1.7 billion. Wall Street had predicted earnings of $1.53 a share on sales of $1.65 billion. In the fiscal third quarter last year, ADI earned $1.36 a share on sales of $1.46 billion.
ADI Stock Rises On Q2 Beat
On the stock market today, ADI stock jumped 5% to 153.12.
“The economic recovery has materialized faster and stronger than initially anticipated, increasing pressure across supply chains globally,” Chief Executive Vincent Roche said in a news release.
He added, “Our decision to strategically invest in additional capacity ahead of this demand inflection has enabled us to move with speed and agility to better serve our customers. These investments combined with continued momentum in bookings give us confidence that our second half will be stronger than the first half.”
Analog Devices makes analog, mixed-signal, and digital signal processing chips used in a host of electronic equipment. Its products serve industrial, communications, automotive and consumer device markets.
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