“Since we have never seen a cycle in which industrial/analog suppliers have avoided a downturn, we’re assuming the latter,” analyst Chris Caso wrote in a note to clients.
For the period ending October 29, Analog Devices (ADI
) said it earned an adjusted $2.73 per share on $3.25B in revenue, up 38.8% year-over-year. Analysts were expecting Analog Devices (ADI
) to earn $2.59 per share and $3.16B in revenue.
Looking ahead, Caso said the company’s first-quarter guidance implied a growth rate of 17% year-over-year, while noting more color is needed on supply and demand going into the next fiscal year.
For the first-quarter, Analog Devices (ADI
) said it expects revenue to be between $3.05B and $3.25B, topping estimates of $3.04B. It also expects operating margins to be 33.4%, plus or minus 130 basis points, while adjusted operating margins are forecast to be between 49.3% and 50.7%.
Adjusted earnings per share are expected to be between $2.50 and $2.70 per share, topping estimates of $2.41 per share.
Competitor Texas Instruments (NASDAQ:TXN
) gained nearly 1.4% to $174.78 on Tuesday following the results.
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) shares gained nearly 2.7% on Tuesday, while Advanced Micro Devices (AMD
) and Intel (INTC
) each gained approximately 2%.
Other chip stocks also rose in mid-day trading on Tuesday, including NXP Semiconductor (NXPI
), Qualcomm (QCOM
), Broadcom (AVGO
) and Monolithic Power Systems (MPWR
), all of which saw modest gains.
On Wednesday, a number of key economic reports will be released as a result of the holiday-shortened trading week. These include October’s durable goods figures, initial and continuing jobless claims, a key reading from the University of Michigan on consumer sentiment and inflation, as well as the minutes from the most recent Federal Open Market Committee meeting, among others.