Market Overview

Analog Devices Earnings Preview: Best Quarter In Years?


Analog Devices, Inc. (NASDAQ: ADI) rose 1 percent on Tuesday as the company prepares to announce its second quarter financial results after the market closes.

Management has guided for the best results in years, with earnings of $0.72 per share on revenue of $820 million. The Street is modeling in line earnings and slightly lower revenue of $818.64 million. The crowd projects earnings one cent above guidance and revenue of $822.82 million.

These estimates compare to earnings of $0.59 per share and revenue $694.54 million reported in the same quarter last year, and earnings of $0.63 per share on revenue of $771.99 million retrieved last quarter.

Analog Devices has managed to beat estimates and guidance in most of the latest quarters.

The chart above illustrates the evolution of consensus estimates over time. Expert and the crowd expectations have been rising as earnings got closer.

Full Year Forecasts

After the last earnings report, Deutsche Bank analysts raised their second quarter revenue estimate to $820 million (from $800 million), and EPS estimate to $0.72 from $0.69.

Related Link: Analog Devices Earnings: What Are Shares Worth Before The Release?

For the full year, the firm anticipates revenue of $3.35 billion and EPS of $3.05. For 2016, $3.54 billion in revenue and $3.35 in EPS.

They rate the stock a Hold and have a $60 price target.

In addition, Jefferies reiterated a Buy rating and boosted its price target from $60 to $68.

Their report explains, “With semis forecasted to under-ship their OEM customers in 1H15, we [the analysts] think semis are set up for upside surprises, as seen with ADI's outlook. We see a strong link between capital return and valuation, and continue to like ADI for its broad-based exposure, its target to return 80% of FCF to investors, and its op margin expansion potential.”

Jefferies now expects revenue of $3.32 billion and EPS of $2.83 for 2015, and revenues of $3.59 billion and EPS of $3.14 for 2016.

Latest Ratings for ADI

Feb 2019Bank of AmericaUpgradesNeutralBuy
Jan 2019RBC CapitalDowngradesOutperformSector Perform
Dec 2018Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for ADI
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Estimize JefferiesAnalyst Color Previews Analyst Ratings Trading Ideas


Related Articles (ADI)

View Comments and Join the Discussion!

Latest Ratings

PLXSSidoti & Co.Initiates Coverage On0.0
TIFBank of AmericaReiterates104.0
MOBank of AmericaReiterates66.0
FDXBank of AmericaReiterates188.0
AUPHRaymond JamesMaintains11.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Trader Essentials
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Rumor Mill Instigates Brief Rally In 3D Systems

Can Salesforce Post 30% Growth This Quarter?