Analog Devices Earnings: What To Look For From ADI

Adam Hejl /
2023/08/22 6:43 am EDT

Manufacturer of analog chips, Analog Devices (NASDAQ:ADI) will be reporting earnings tomorrow before the bell. Here's what to look for.

Last quarter Analog Devices reported revenues of $3.26 billion, up 9.79% year on year, beating analyst revenue expectations by 1.77%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

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 decline 0.18% year on year to $3.1 billion, a deceleration from the 76.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.52 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 2.68%.

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. Magnachip's revenues decreased 39.8% year on year, beating analyst estimates by 0.79%, and Sensata Technologies reported revenues up 4.07% year on year, exceeding estimates by 3.47%. Magnachip traded down 3.01% on the results, Sensata Technologies was flat on the results.

Read our full analysis of Magnachip's results here and Sensata Technologies's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off since 2022 and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 5% over the last month. Analog Devices is down 6.69% during the same time, and is heading into the earnings with analyst price target of $207, compared to share price of $179.51.

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