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“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.
Nvidia (NVDA) 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.


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