Market Overview

Earnings Preview: Analysts Expect Analog Devices' Revenue, Earnings to Dip

Analog Devices (NYSE: ADI) releases its next round of earnings this Monday, November 21, 2011. Get the latest predictions in Benzinga's essential guide to the company's fourth quarter earnings report.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 63 cents/share and revenues of $730 million. Analog Devices' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 73 cents/share on revenues of $770 million. Investors are bracing themselves for Monday when we'll learn if the company reports lower EPS and slightly reduced revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 Q2 Q1 Q4
EPS Estimate $0.73 $0.68 $0.65 $0.70
EPS Actual $0.71 $0.75 $0.66 $0.73

(Estimates Source: Zacks)

Stock Performance:

As of November 15, 2011, Analog Devices' current share price was $36.66. Shares are down 0.8% year to date. For a full 12 months, the return has declined by 8.5%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

  • Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Want to check out the performance of Analog Devices closest competitors? Take a look at some of the company's peers in the information technology sector.

  • Broadcom (NASDAQ: BRCM): Moderate Buy with a $0.48 recent quarter EPS
  • Cirrus Logic (NASDAQ: CRUS): Moderate Buy with a $0.27 recent quarter EPS
  • Intersil (NASDAQ: ISIL): Hold with a $0.10 recent quarter EPS
  • Linear Technology (NASDAQ: LLTC): Hold with a $0.48 recent quarter EPS

Analog Devices is in the semiconductors-analog and mixed industry, which has experienced price/earnings growth of 2.3%.

Finally, a description of the company's main areas of operation: Analog Devices designs, manufactures, and markets analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications.

Take Action:

Now that you've gotten an advanced peak at Analog Devices' upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

  • To see up-to-date news on Analog Devices, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

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