Analog Devices Stock Falls on Below-Estimated Guidance

by Warren Seah

Analog Devices (ticker: ADI) saw its stock decline on Tuesday after the semiconductor company provided fiscal first-quarter guidance that fell below analysts’ expectations.

  • Fiscal First-Quarter Guidance

    • Analog Devices guided for fiscal first-quarter earnings of $1.70 a share, plus or minus 10 cents a share.
    • Revenue is projected to be $2.5 billion, plus or minus $100 million.
    • FactSet analysts had anticipated first-quarter earnings of $1.91 a share on revenue of $2.69 billion.
  • Fiscal Fourth-Quarter Earnings

    • Analog Devices reported fiscal fourth-quarter earnings of $2.01 a share, which was just below Wall Street estimates of $2.02 a share.
    • The company exceeded revenue expectations for the quarter, with $2.72 billion compared to an expected $2.7 billion.
    • In the same period last year, Analog Devices posted earnings of $2.73 a share on revenue of $3.25 billion.

Chief Executive Vincent Roche commented on the results, stating, “For the fourth quarter, ADI delivered revenue and profitability above the midpoint of our outlook, despite the difficult macroeconomic environment.”

As a result of the news, shares of Analog Devices dropped 2.9% to $178.50 in premarket trading on Tuesday. However, the stock has shown an overall gain of 12% throughout the year.

You may also like

Leave a Comment