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Analog Devices beats estimates – the stock is up

22 February 2024 By Klavs Valters

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American Semiconductor manufacturing company Analog Devices Inc. (NASDAQ: ADI) released fiscal first quarter 2024 financial results before the US market open on Wednesday.

The company topped analyst estimates for both revenue and earnings per share (EPS) for the second quarter in a row.

Analog achieved revenue of $2.513 billion for the quarter ending 3/2/24 vs. $2.497 billion expected. Revenue decreased by 23% vs. the same period last year.

EPS reported at $1.73 vs. $1.705 per share estimate. EPS was down by 37% year-over-year.

Analog also raised its quarterly dividend by 7% to $0.92 a share to be paid on 15/3/24 to all shareholders as of 5/3/24.

Company overview

  • Founded: 1965
  • Headquarters: Wilmington, Massachusetts, United States
  • Number of employees: 24,450 (2022)
  • Industry: Semiconductors
  • Key people: Vincent Roche (Chairman and CEO)

CEO commentary

Company CEO, Vincent Roche said this in a letter to investors: “ADI delivered first quarter revenue and profitability above the midpoint of our outlook, despite the continued difficult macroeconomic environment”

“Consistent with our prior view, we expect customer inventory rationalization to largely subside in our second quarter, and thus enter the second half in a more favorable business backdrop. Importantly, we are well positioned to capitalize on the inevitable upswing given our replenished die banks, short lead times, and agile hybrid manufacturing model,” Roche concluded his statement.

Stock reaction

The latest results had a postive impact on the stock on Wednesday. Shares were up by nearly 2%, trading at $193.03 a share.

Stock performance

  • 5 day: +3.39%
  • 1 month: -2.86%
  • 3 months: +5.45%
  • Year-to-date: -2.99%
  • 1 year: +4.83%

Analog Devices stock price targets

  • Cantor Fitzgerald: $205
  • Wolfe Research: $225
  • Barclays: $185
  • Sandford C. Bernstein: $200
  • TD Cowen: $210
  • Truist Financial: $206
  • Susquehanna: $210
  • UBS Group: $210
  • Piper Sandler: $175
  • Oppenheimer: $215
  • Morgan Stanley: $225
  • Evercore ISI: $210

Analog Devices Inc. is the 163rd largest company in the world with a market cap of $95.76 billion, according to CompaniesMarketCap.

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  • Volatility never sleeps. Trade over earnings releases as they happen outside of main trading hours
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  • Extended trading hours on popular US stocks means extended opportunities

Sources: Analog Devices, TradingView, MarketWatch, MarketBeat, CompaniesMarketCap

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Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.