10003

Analog Devices Q4 Earnings: What To Expect


Jabin Bastian /
2022/02/15 6:21 am EST
Add to Watchlist

Manufacturer of analog chips, Analog Devices (NASDAQ:ADI) will be announcing earnings results tomorrow before market hours. Here's what to expect.

Last quarter Analog Devices reported revenues of $2.33 billion, up 53.2% year on year, beating analyst revenue expectations by 1.33%. It was a solid quarter for the company, with a significant improvement in inventory levels and an exceptional revenue growth.

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 67.5% year on year to $2.61 billion, improving on the 19.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $1.78 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 missed Wall St's revenue estimates twice over the last two years.

Looking at Analog Devices's peers in the analog semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. ON Semiconductor (NASDAQ:ON) delivered top-line growth of 27.6% year on year, beating analyst estimates by 3.08% and Monolithic Power Systems (NASDAQ:MPWR) reported revenues up 44.3% year on year, exceeding estimates by 4.57%. ON Semiconductor traded up 14.8% on results, Monolithic Power Systems was up 4.24%. Read our full analysis of ON Semiconductor's results here and Monolithic Power Systems's results here.

Tech stocks have been under pressure since the end of last year and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 7.82% over the last month. Analog Devices is down 7.5% during the same time, and is heading into the earnings with analyst price target of $193.2, compared to share price of $154.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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