Analog Devices (ADI) Reports Q1: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2023/02/14 5:05 am EST

Manufacturer of analog chips, Analog Devices (NASDAQ:ADI) will be reporting earnings tomorrow before market open. Here's what investors should know.

Last quarter Analog Devices reported revenues of $3.25 billion, up 38.8% year on year, beating analyst revenue expectations by 2.87%. It was a strong quarter for the company, with a significant improvement in operating margin and a beat on the bottom line.

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This quarter analysts are expecting Analog Devices's revenue to grow 17.4% year on year to $3.15 billion, slowing down from the 72.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.60 per share.

Analog Devices Total Revenue

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 2.89%.

Looking at Analog Devices's peers in the analog semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. NXP Semiconductors delivered top-line growth of 8.98% year on year, beating analyst estimates by 0.48% and Sensata Technologies reported revenues up 8.57% year on year, exceeding estimates by 1.67%. NXP Semiconductors traded down 2.04% on the results, and Sensata Technologies was flat on the results. Read our full analysis of NXP Semiconductors's results here and Sensata Technologies's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 8.35% over the last month. Analog Devices is up 9.58% during the same time, and is heading into the earnings with analyst price target of $194.6, compared to share price of $182.9.

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The author has no position in any of the stocks mentioned.