Manufacturer of analog chips, Analog Devices (NASDAQ:ADI) will be reporting earnings tomorrow morning. Here's what you need to know.
Last quarter Analog Devices reported revenues of $3.25 billion, up 21.1% year on year, beating analyst revenue expectations by 3.27%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and a beat on the bottom line.
Is Analog Devices buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Analog Devices's revenue to grow 7.6% year on year to $3.2 billion, slowing down from the 78.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.76 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.9%.
Looking at Analog Devices's peers in the analog semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Sensata Technologies delivered top-line growth of 2.3% year on year, beating analyst estimates by 1.36% and Microchip Technology reported revenues up 21.1% year on year, exceeding estimates by 0.4%. Sensata Technologies traded flat on the results, Microchip Technology was down 7.92%. Read our full analysis of Sensata Technologies's results here and Microchip Technology's results here.
There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 6.25% over the last month. Analog Devices is up 2.7% during the same time, and is heading into the earnings with analyst price target of $217.8, compared to share price of $192.
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The author has no position in any of the stocks mentioned.