Manufacturer of analog chips Analog Devices (NASDAQ: ADI) will be reporting results this Wednesday before market hours. Here’s what to look for.
Analog Devices beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $2.64 billion, up 22.3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive 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 19.5% year on year to $2.76 billion, a reversal from the 24.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.95 per share.
The majority of analysts covering the company have 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 1.7% on average.
Looking at Analog Devices’s peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Impinj’s revenues decreased 4.5% year on year, beating analysts’ expectations by 4.3%, and Universal Display reported revenues up 8.4%, topping estimates by 6.1%. Impinj traded up 26.2% following the results while Universal Display’s stock price was unchanged.
Read our full analysis of Impinj’s results here and Universal Display’s results here.
Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Analog Devices is down 3.5% during the same time and is heading into earnings with an average analyst price target of $254.16 (compared to the current share price of $232.10).
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