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

Anthony Lee /
2024/05/21 3:02 am EDT

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

Analog Devices met analysts' revenue expectations last quarter, reporting revenues of $2.51 billion, down 22.7% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

Is Analog Devices a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Analog Devices's revenue to decline 35.5% year on year to $2.11 billion, a reversal from the 9.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 per share.

Analog Devices Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Analog Devices has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Analog Devices's peers in the analog semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ON Semiconductor's revenues decreased 4.9% year on year, meeting analysts' expectations, and Magnachip reported a revenue decline of 13.9%, in line with consensus estimates. ON Semiconductor traded up 3.1% following the results while Magnachip was also up 3.2%.

Read our full analysis of ON Semiconductor's results here and Magnachip's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 17.1% on average over the last month. Analog Devices is up 16.9% during the same time and is heading into earnings with an average analyst price target of $217.6 (compared to the current share price of $217.76).

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