Analog Devices Beats Q3 Expectations, Shares Surge

Shares of

jumped over 5 percent in after-hours trading after the company reported better-than-expected results for its fiscal third quarter. The Norwood, Massachusetts-based company posted quarterly earnings of $216.5 million, or $0.68 per share, compared to $180.6 million, or $0.57 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings came in at $0.77 per share. Its revenue climbed 19 percent year-over-year to $863.4 million. However, analysts were expecting earnings of $0.74 per share on revenue of $845.4 million. The average estimate among 13 Estimize users was for earnings of $0.76 per share and revenue of $851.03 million. Its gross margin expanded to 65.9 percent of revenue, from 65.4 percent of revenue. The company's board declared a cash dividend of $0.40 per share of common stock. "We had a very strong third quarter, with revenue growing to a record $863 million and earnings at the very high end of expectations," said Vincent Roche, President and CEO. "Once again this quarter, our focus on sustainable innovation that bridges the physical and digital worlds across diverse applications and markets, coupled with strong execution throughout the Company, delivered solid growth and profits." For the fourth quarter, ADI expects adjusted earnings of $0.79 to $0.87 per share, on sales of $880 million to $940 million. Analysts projected earnings of $0.79 per share on revenue of $879 million. ADI shares climbed 5.67 percent to $61.17 in the after-hours trading session.