Analog Devices (ADI) Reports Q3: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/08/16 4:35 am EDT

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

Last quarter Analog Devices reported revenues of $2.97 billion, up 78.8% year on year, beating analyst revenue expectations by 4.82%. It was a very strong quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.

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This quarter analysts are expecting Analog Devices's revenue to grow 73.8% year on year to $3.05 billion, improving on the 20.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.43 per share.

Analog Devices Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. 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 3.26%.

Looking at Analog Devices's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Monolithic Power Systems delivered top-line growth of 57.1% year on year, beating analyst estimates by 7.06% and NXP Semiconductors reported revenues up 27.5% year on year, exceeding estimates by 1.43%. Monolithic Power Systems traded up 3.96% on the results, and NXP Semiconductors was flat on the results. Read our full analysis of Monolithic Power Systems's results here and NXP Semiconductors's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 15.7% over the last month. Analog Devices is up 16.1% during the same time, and is heading into the earnings with analyst price target of $194.2, compared to share price of $180.39.

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