Manufacturer of analog chips Analog Devices (NASDAQ:ADI) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
Analog Devices beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $2.42 billion, down 3.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Analog Devices a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Analog Devices’s revenue to grow 16.3% year on year to $2.51 billion, a reversal from the 33.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.70 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Analog Devices has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at Analog Devices’s peers in the analog semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Himax delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 2.4%, and onsemi reported a revenue decline of 22.4%, topping estimates by 3.1%. Himax traded up 1.9% following the results while onsemi was down 8.2%.
Read our full analysis of Himax’s results here and onsemi’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 28.5% on average over the last month. Analog Devices is up 25.5% during the same time and is heading into earnings with an average analyst price target of $244.67 (compared to the current share price of $223.99).
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