Manufacturer of analog chips Analog Devices (NASDAQ: ADI) will be reporting earnings this Wednesday morning. Here’s what to look for.
Analog Devices beat analysts’ revenue expectations last quarter, reporting revenues of $3.16 billion, up 30.4% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Analog Devices a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Analog Devices’s revenue to grow 33.2% year on year, improving from the 22.3% increase it recorded in the same quarter last year.
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 a history of exceeding Wall Street’s expectations.
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. Texas Instruments delivered year-on-year revenue growth of 18.6%, beating analysts’ expectations by 6.6%, and Microchip Technology reported revenues up 35.1%, topping estimates by 3.8%. Texas Instruments traded up 19.4% following the results while Microchip Technology was down 2.5%.
Read our full analysis of Texas Instruments’s results here and Microchip Technology’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 17.8% on average over the last month. Analog Devices is up 10.4% during the same time and is heading into earnings with an average analyst price target of $408.03 (compared to the current share price of $420.60).
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