Chipmaker Analog Devices on Wednesday handily beat Wall Street's targets for its fiscal first quarter and guided higher for the current period. ADI stock rose on the news.
The Wilmington, Mass.-based company earned an adjusted $1.94 a share on sales of $2.68 billion in the quarter ended Jan. 29. Analysts had expected earnings of $1.80 a share on sales of $2.61 billion, according to FactSet. On a year-over-year basis, Analog Devices earnings increased 35% while sales jumped 72%.
For the current quarter, Analog Devices forecast adjusted earnings of $2.07 a share on sales of $2.8 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of $1.86 a share on sales of $2.66 billion. In the year-earlier period, Analog Devices earned $1.54 a share on sales of $1.66 billion.
Also, Analog Devices increased its quarterly cash dividend by 10% to 76 cents a share. It marked the company's 19th dividend increase in the last 18 years.
ADI Stock Advances
On the stock market today, ADI stock rose 3.9% to close at 168.34. During the regular session Tuesday, ADI stock advanced 5.2% to 162.04. But Analog Devices is trading below its 50-day and 200-day lines.
"ADI delivered its fourth consecutive quarter of record revenue with momentum across all end markets and geographies," Chief Executive Vincent Roche said in a news release. "With higher bookings and backlog as well as additional capacity investments, I am confident we will sustain this level of performance throughout 2022."
Analog Devices makes analog and mixed signal, power management, radio frequency and sensor semiconductors. Its chips are used in industrial, communications, automotive and consumer markets.
Lattice Posts Beat-And-Raise Report
Other semiconductor stocks moving on earnings news Wednesday included Lattice Semiconductor and Navitas Semiconductor. Both fabless chipmakers posted fourth-quarter results late Tuesday.
Hillsboro, Ore.-based Lattice delivered a beat-and-raise report. It earned an adjusted 32 cents a share, up 68% year over year, on sales of $141.8 million, up 32%, in the fourth quarter.
For the first quarter, the maker of low-power programmable chips forecast sales of $146 million, based on the midpoint of its outlook. That would translate to year-over-year growth of 26%.
Lattice stock rose 6.9% to 64.91 on Wednesday.
Navitas Disappoints With Guidance
El Segundo, Calif.-based Navitas delivered a mixed quarterly report and missed views with its outlook.
In the December quarter, it lost an adjusted 7 cents a share on sales of $7.3 million. Analysts had expected Navitas to lose 11 cents a share on sales of $7.4 million, FactSet said. In the year-earlier period, it lost an adjusted 39 cents a share on sales of $4.7 million.
Navitas forecast first-quarter sales of $6 million to $7 million. The midpoint of $6.5 million fell well short of the consensus estimate of $7.8 million.
For the full year ahead, it expects sales to double to about $48 million. But Wall Street was modeling $49.1 million for 2022. Navitas makes gallium nitride-based power integrated circuits.
Navitas stock plummeted 18.4% to 9.56 on Wednesday.
ADI Stock Lags Among Chipmakers
The IBD Stock Checkup ranks ADI stock No. 17 out of 42 stocks in IBD's semiconductor manufacturers industry group. It has an IBD Composite Rating of 78 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Meanwhile, Lattice ranks No. 11 out of 31 stocks in IBD's fabless chipmaker group. It has an IBD Composite Rating of 91. Navitas ranks No. 20 in the group with a Composite Rating of 33.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
