Chipmaker Analog Devices Beats Second-Quarter Estimates, Guides Up

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.

ADI stock has formed a cup-with-handle base with a buy point of 164, according to IBD MarketSmith charts.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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