Wednesday, April 17, 2024

Analog Devices Crushes Quarterly Targets On Strong Auto, Industrial Chip Sales

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Chipmaker Analog Devices (ADI) on Wednesday crushed analyst estimates for its fiscal first quarter and with its guidance for the current period. ADI stock jumped in morning trades.


The Wilmington, Mass.-based company earned an adjusted $2.75 a share on sales of $3.25 billion in the quarter ended Jan. 28. Analysts polled by FactSet had predicted earnings of $2.61 a share on sales of $3.15 billion. On a year-over-year basis, Analog Devices earnings surged 42% while sales rose 21%.

The company cited record automotive and industrial chip sales for its outperformance in the first quarter.

For the current quarter, Analog Devices predicted earnings of an adjusted $2.75 a share on sales of $3.2 billion. Wall Street was forecasting  earnings of $2.42 a share on sales of $3.03 billion in the fiscal second quarter. In the year-earlier period, Analog Devices earned $2.40 a share on sales of $2.97 billion.

Also, Analog Devices raised its quarterly dividend by 13% to 86 cents a share.

Analog Devices Pops After Report

In morning trades on the stock market today, ADI stock jumped 6.6% to 194.60.

“Despite the macro uncertainty, demand remains resilient in our industrial and automotive markets, driven by continued momentum across secular growth areas, such as automation and electrification,” Chief Executive Vincent Roche said in a news release.

He added, “Looking ahead, pervasive sensing, AI-driven edge computing, and ubiquitous connectivity are enabling new capabilities, applications, and markets at the intelligent edge. ADI, the bridge between the physical and digital worlds, is well-positioned to deliver breakthrough innovations that positively impact society and unlock long-term value for all stakeholders.”

ADI Stock Is A Recent Breakout

On Feb. 2, ADI stock hit a buy point of 180.05 out of a cup base, according to IBD MarketSmith charts. It climbed to a 52-week high of 183.13 on Tuesday.

Analog Devices makes analog and mixed signal, power management, radio frequency and sensor semiconductors. Its chips are used in industrial, communications, automotive and consumer markets.

ADI stock ranks fifth out of 31 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 96 out of 99.

IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Further, ADI stock is on IBD’s Big Cap 20 and Tech Leaders stock lists.

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


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