Analog Devices Can’t Make Up Its Mind on Earnings

By Chris Lange Updated Apr 27, 3:54PM EDT · Published May 19, 4:43PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Analog Devices Inc. (NASDAQ: ADI) released its fiscal second-quarter financial results Tuesday after the markets closed. The company had $0.73 in earnings per share (EPS) on $821 million in revenue, compared to Thomson Reuters consensus estimates of $0.72 in EPS on $820.37 million in revenue. The same period in the previous year had $0.59 in EPS on $694.54 million in revenue.

The company announced that its board of directors declared a cash dividend of $0.40 per outstanding share of common stock, payable June 9, to shareholders of record on May 29.

To end the fiscal second quarter, Analog Devices recorded cash and short-term investments of $3.07 billion, compared to $2.87 billion at the end of the fiscal first quarter and $4.81 billion in the second quarter of fiscal 2014.

Vincent Roche, president and CEO of Analog Devices, said:

We had a very successful second quarter driven by the quality of our innovation, the diversity of our business, and our strong execution. Revenue increased to a record $821 million, and our operating model generated strong cash flows and diluted earnings per share growth that was well ahead of revenue growth.

He continued to explain the company’s outlook for the next quarter:

Looking ahead, our book to bill ratio was positive in the second quarter and we are seeing stable order rates across all our end markets. As a result, we are planning for sequential growth in the third quarter and for revenue to be in the range of $825 million to $865 million.

At the same time, the company expects EPS in the range of $0.71 to $0.77. There are consensus estimates for the fiscal third quarter of $0.77 in EPS on $845.84 million in revenue.

So far shares are up about 15% year to date. They also trade at 21.7 times earnings of the 2015 fiscal year.

Shares of Analog Devices closed Tuesday up barely 0.2% at $63.46. After earnings were released, shares were initially down 0.5% at $63.12 in after-hours trading. The stock has a consensus analyst price target of $62.64 and a 52-week trading range of $42.57 to $64.94.

ALSO READ: States Where the Most (and Least) People Work for the Government

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.