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Based in Wilmington, Massachusetts, Analog Devices, Inc. (ADI) is a global leader in the semiconductor industry. It is renowned for its high-performance analog, mixed-signal, and digital signal processing technologies. ADI provides innovative solutions that are integral to a wide range of industries, including automotive, healthcare, and industrial automation. With a market cap of $112.36 billion, Analog Devices is known for its commitment to technological advancement, robust product portfolio, and strong customer relationships. ADI is scheduled to announce its fiscal Q3 earnings results before the market opens on Wednesday, Aug. 21.
Ahead of the event, analysts expect ADI to report a profit of $1.50 per share, down 39.8% from $2.49 per share in the year-ago quarter. In the last four quarters, the company has surpassed or matched Wall Street’s bottom-line estimates in three and missed on another occasion.
Its adjusted earnings of $1.40 per share for the last reported quarter surpassed the consensus estimate by 11.1%. The company’s quarterly results were driven by stronger-than-expected performance in the automotive and consumer segments.
For fiscal 2024, analysts expect ADI to report EPS of $6.24, down 38.2% from $10.09 in fiscal 2023.
ADI stock is up 14.5% on a YTD basis, in line with the broader S&P 500 Index's ($SPX) 14.5% gains. However, the stock has underperformed the VanEck Semiconductor ETF’s (SMH) 36.4% returns over the same time frame.
ADI reported Q2 earnings on May 22. Revenue for the period was $2.16 billion, exceeding analysts' forecasts of $2.10 million. The stock gained 10.9% on the day of the earnings release.
The consensus opinion on ADI stock is bullish, with an overall “Strong Buy” rating. Out of 26 analysts covering the stock, 18 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and seven recommend a “Hold.” ADI's average analyst price target is $258.57, indicating a potential upside of 13.7% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
