What to Expect From Analog Devices Q1 Earnings Today?

Analog Devices (NASDAQ:ADI) saw its shares surge over 6% intra-day today after delivering better-than-expected first-quarter earnings and issuing an optimistic outlook for the second quarter.

For Q1, the semiconductor company posted earnings per share of $1.63, surpassing analyst expectations of $1.54. Revenue fell 4% year-over-year to $2.42 billion, but still came in ahead of the $2.36 billion consensus forecast.

Margins also exceeded estimates, with an adjusted gross margin of 68.8%, compared to the 67.8% projection, while its adjusted operating margin reached 40.5%, slightly above the expected 40.2%.

Management highlighted an improving demand cycle and strong execution across key business segments, positioning Analog Devices for a gradual recovery despite macroeconomic and geopolitical challenges.

For Q2 2025, the company forecasts earnings per share of $1.68, plus or minus $0.10, slightly exceeding the $1.66 analyst consensus. Revenue guidance of $2.5 billion, plus or minus $100 million, also landed above the $2.457 billion Wall Street estimate.

Analog Devices, Inc. (NASDAQ: ADI) is a prominent player in the semiconductor industry, specializing in high-performance analog, mixed-signal, and digital signal processing technology. The company is known for its innovative solutions that cater to various sectors, including consumer electronics, automotive, and industrial applications. ADI competes with other semiconductor giants like Texas Instruments and NXP Semiconductors.

On February 19, 2025, ADI reported its earnings for the first quarter of fiscal year 2025, showcasing a strong performance. The company reported earnings per share (EPS) of $1.63, surpassing the estimated $1.54, marking an earnings surprise of 5.84% as highlighted by Zacks. Despite this achievement, the EPS was slightly lower than the $1.73 reported in the same quarter last year, indicating some challenges in maintaining growth.

ADI's revenue for the quarter was approximately $2.42 billion, exceeding the estimated $2.36 billion by 2.79%. This positive performance was driven by a resurgence in chip demand, particularly within the consumer segment, which saw a 19% increase to $322.9 million. The growing adoption of AI-driven devices, premium smartphones, and smart home products contributed to this surge, as noted by Chief Executive Vincent Roche.

Despite the success in beating estimates, ADI faced year-over-year declines, with revenue slightly down from the $2.51 billion reported in the previous year. However, the company has consistently exceeded consensus EPS and revenue estimates over the last four quarters, demonstrating its resilience and strong performance in the semiconductor industry.

ADI's financial metrics reflect its market position and investor confidence. With a price-to-earnings (P/E) ratio of approximately 68.51, investors are willing to pay $68.51 for every dollar of earnings. The company's low debt-to-equity ratio of 0.22 indicates a strong financial position, while a current ratio of 1.84 suggests a robust ability to cover short-term liabilities. These metrics highlight ADI's stability and potential for future growth.

Analog Devices, Inc. (NASDAQ:ADI) is a key player in the semiconductor industry, specializing in data conversion, signal processing, and power management technologies. The company designs and manufactures integrated circuits and subsystems for various markets, including automotive, communications, and industrial sectors. ADI competes with other semiconductor giants like Texas Instruments and NXP Semiconductors.

Over the past year, ADI has seen a positive trend in its consensus price target, reflecting growing analyst optimism. Last month, the average price target was $250, up from $240 last quarter and $239.33 last year. This upward trend suggests confidence in ADI's stock performance, likely driven by its strategic focus on expanding product offerings and strengthening its market position.

Despite challenges in the semiconductor industry, ADI has shown resilience with sequential revenue growth, particularly in the automotive and high-performance analog segments. The company's valuation is high at 33.64 times earnings, but anticipated growth in AI and EV battery management could justify this. Morgan Stanley, however, has set a more conservative price target of $178.

ADI's stock price has increased modestly by 0.4% since its last earnings report 30 days ago. This slight uptick raises questions about the sustainability of this trend. Investors should monitor upcoming earnings announcements and industry developments to assess future stock performance and potential growth opportunities.

In summary, ADI's positive price target trend and strategic initiatives in expanding its product offerings and market presence contribute to analysts' optimism. However, the high valuation and modest recent stock price increase suggest a cautious approach, with attention to future earnings and industry trends being crucial for investors.

• David Williams from Williams Trading has set a bullish price target of $245 for NASDAQ:ADI, indicating a potential increase of approximately 14.16%.
• Despite an anticipated 11% decline in earnings per share and a 6.2% decrease in revenues for Q1, the consensus EPS estimate has remained stable over the past 30 days.
• ADI's current stock price of $214.61 reflects an increase of approximately 2.52%, with a trading volume highlighting active investor interest.

Analog Devices Inc. (NASDAQ:ADI) is a prominent player in the semiconductor industry, known for its innovative solutions in analog and digital signal processing. The company designs and manufactures a wide range of products, including integrated circuits and sensors, which are used in various applications such as automotive, communications, and industrial sectors. ADI competes with other major semiconductor companies like Texas Instruments and NXP Semiconductors.

On February 14, 2025, David Williams from Williams Trading set a bullish price target of $245 for ADI. At the time, the stock was trading at $214.61, suggesting a potential increase of approximately 14.16%. This optimistic outlook comes as ADI prepares to release its Q1 earnings report. Analysts project earnings of $1.54 per share, an 11% decline from the same quarter last year. Despite this, the price target indicates confidence in ADI's future performance.

The company's anticipated revenues for Q1 are $2.36 billion, marking a 6.2% decrease from the previous year. Despite these declines, the consensus earnings per share (EPS) estimate has remained unchanged over the past 30 days. This stability in estimates suggests that analysts have not revised their initial projections, which can be a positive sign for investors. Revisions to earnings estimates are crucial as they can significantly influence investor actions and the short-term price performance of a stock.

Currently, ADI's stock is priced at $214.61, reflecting an increase of approximately 2.52% or $5.27. During the trading day, the stock reached a low of $210.64 and a high of $215.15. Over the past year, ADI has seen a high of $244.14 and a low of $182.57. The company's market capitalization stands at approximately $106.47 billion, indicating its significant presence in the market.

Today's trading volume for ADI is 3,938,608 shares, highlighting active investor interest. As highlighted by Benzinga, the stock's performance and the upcoming earnings report are key factors to watch. The strong correlation between trends in earnings estimate revisions and stock price movements underscores the importance of these projections for investors.

• Wells Fargo upgraded Analog Devices Inc. (NASDAQ:ADI) to an "Overweight" rating, indicating a positive outlook despite anticipated earnings declines.
• ADI's Q1 earnings report is expected to show an 11% decline in earnings per share and a 6.2% decrease in revenues, yet consensus EPS estimates have remained stable.
• The stock's recent trading range reflects market anticipation of the upcoming earnings announcement, with a significant market capitalization of approximately $106.47 billion.

Analog Devices Inc. (NASDAQ:ADI) is a prominent player in the semiconductor industry, specializing in the design and manufacturing of analog, mixed-signal, and digital signal processing integrated circuits. These components are crucial in a wide range of applications, from consumer electronics to industrial automation. ADI competes with other major semiconductor companies like Texas Instruments and NXP Semiconductors.

On February 14, 2025, Wells Fargo upgraded ADI to an "Overweight" rating, signaling a positive outlook on the stock. At the time, ADI's stock price was $214.61, reflecting a 2.52% increase or $5.27. This upgrade was part of a new coverage initiation, as highlighted by Benzinga, and suggests confidence in ADI's future performance despite upcoming earnings challenges.

ADI is preparing to release its Q1 earnings report for the quarter ending January 2025. Analysts expect earnings of $1.54 per share, an 11% decline from the previous year. Revenues are projected at $2.36 billion, a 6.2% decrease. Despite these anticipated declines, the consensus earnings per share (EPS) estimate has remained stable over the past 30 days, indicating no revisions by analysts.

This stability in EPS estimates is significant for investors, as changes in earnings estimates often influence short-term stock price movements. As the earnings announcement nears, investors will watch for any revisions to these estimates, which could impact ADI's stock price. The stock's recent trading range, with a low of $210.64 and a high of $215.15, reflects market anticipation.

ADI's market capitalization is approximately $106.47 billion, with a trading volume of 3,938,608 shares on the NASDAQ exchange. Over the past year, ADI's stock has seen a high of $244.14 and a low of $182.57. These figures highlight the stock's volatility and the potential impact of upcoming earnings on its market performance.

Analog Devices (NASDAQ:ADI) has been named Citi’s new top pick in the U.S. semiconductor sector. The analysts moved Analog Devices to the top position due to its lower downside risk in the automotive sector compared to other analog semiconductor companies, especially after recently announcing earnings. Meanwhile, Broadcom and AMD continue to hold the second and third spots, with both remaining top picks for AI-related investments, though there are concerns about potential margin pressures in their AI segments.

Citi also upgraded Texas Instruments to fourth place, citing expectations of rising gross margins, despite concerns over the fourth-quarter 2024 guidance. Any potential share-price weakness is seen as a buying opportunity. Micron was downgraded to fifth, with Citi expecting lower consensus estimates in the near term, but the firm believes the ongoing DRAM inventory correction will end within a few quarters. Microchip remains in the last position among Citi’s Buy-rated semiconductor stocks, pending further catalysts for growth.

Analog Devices (NASDAQ:ADI) saw its shares rise by more than 5% in pre-market today following better-than-expected Q2 results and guidance.

For Q2, the company reported earnings per share (EPS) of $1.40, exceeding the Street estimate of $1.26. Revenue was $2.16 billion, above the consensus forecast of $2.1 billion.

The adjusted gross margin for the quarter was 66.7%, slightly below the projected 67.1%, while the adjusted operating margin was 39%, surpassing the expected 37.7%.

Looking ahead to Q3/24, Analog Devices projects EPS between $1.40 and $1.60, significantly higher than the Street expectation of $1.35. Revenue is anticipated to be between $2.17 billion and $2.37 billion, compared to the consensus of $2.16 billion.

CEO and Chairman Vincent Roche noted that despite ongoing macroeconomic and inventory challenges, the company delivered second-quarter revenue above the midpoint of its outlook. He attributed the strong performance to a resilient business model and disciplined cost control, which resulted in higher-than-expected profitability and EPS.

Roche also expressed optimism about the future, citing stabilizing inventory rationalization and improving new orders as indicators of a potential cyclical recovery starting in the third quarter.