Why Analog Devices Stock Cranked More than 2% Higher Today
Scuttlebutt in China
That note was authored by Bernstein 's Qingyuan Lin, who addressed rumors in the market that Texas Instruments was planning to hike prices.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
According to reports, the pundit said that Bernstein's contacts in China -- where the American company has a large manufacturing presence -- have confirmed this speculation. He added that the rumors fueled optimism for analog chipmakers generally, and Analog Devices is a top name in that group.
Lin cautioned, however, that the move might be Texas Instruments' attempt to boost its profit margins, rather than a reaction to a shortage of supplies. That being said, he noted that the analog segment could be on pace for an upcycle. In his view, this will be due mainly to inventory restocking. An upsurge could also result in higher margins for various players, not only Texas Instruments.
Upswing incoming?
This isn't the first note in recent days that has boosted sentiment on Analog Devices; last week, a Citigroup update on the wider semiconductor industry tagged the company as one of its two top picks in the sector. The bank pointed out that "semi" sales were up a robust 24% year over year in April, and selling prices have seen narrower declines than expected.
We might indeed be witnessing the start of an upcycle, and if so, Analog Devices would be a good play on that dynamic.
Should you invest $1,000 in Analog Devices right now?
Before you buy stock in Analog Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Analog Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!*
Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
29 minutes ago
- Globe and Mail
Chefs' Warehouse (CHEF) Q2 Revenue Up 8%
Key Points Earnings per share (Non-GAAP) rose to $0.52, beating the analyst estimate by 13.0 %. Revenue (GAAP) grew 8.4% to $1,034.9 million, topping expectations and led by strength in specialty categories. Profitability expanded with higher gross margins These 10 stocks could mint the next wave of millionaires › Chefs' Warehouse (NASDAQ:CHEF), a specialty food distributor with a focus on high-end restaurants and culinary professionals, released results on July 30, 2025. It reported GAAP revenue of $1,034.9 million and earnings per share (Non-GAAP) of $0.52. These figures surpassed analyst expectations, which had projected $1,013.5 million in GAAP revenue. The period showed notable strength in gross profit and operating leverage. Overall, the quarter reflected strong execution on key initiatives and cautious optimism as the company modestly raised its full-year financial guidance. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.52 $0.46 $0.40 30.0 % Revenue $1,034.9 million $1,013.5 million $954.7 million 8.4 % Net Income $21.2 million $15.5 million 36.8 % Adjusted EBITDA $65.4 million $56.2 million 16.4 % Gross Profit $254.3 million $229.0 million 11.1 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Understanding Chefs' Warehouse: Business Model and Strategic Focus Chefs' Warehouse is a distributor of specialty foods, center-of-the-plate proteins (such as meat and seafood), and staple kitchen ingredients. Its customers include independent and fine-dining restaurants, hotels, country clubs, and gourmet food retailers. The company differentiates itself by offering over 88,000 unique products, sourced from more than 4,000 suppliers globally, including artisan producers and family-owned businesses. Recent strategic focus has centered on broadening its product catalog, investing in digital ordering systems, and deepening supplier partnerships. It also has a disciplined approach to shedding lower-margin, non-core business—such as commodity poultry—which provides more room to grow higher-margin specialty offerings. Expansion into new geographies, both within the US and internationally, supports ongoing growth. Key success factors include maintaining exclusive supplier connections, understanding culinary trends, and supporting chefs through a skilled and specialized sales force. Quarterly Highlights: Growth Drivers and Notable Changes The company saw organic revenue growth powered by increased demand for specialty foods. The specialty food category posted an organic case count increase of 3.5%, while unique customer relationships and product placements rose by 3.6% and 8.7%, respectively. A deliberate exit from a low-margin commodity poultry program in the center-of-the-plate segment led to a 4.0% decline in organic pounds sold in that category. This was an anticipated shift, outlined by management as part of its ongoing effort to prioritize profitability, resulting in improved average margin per unit sold despite lower overall volume. Profitability improved at multiple levels. Gross profit margin expanded by 59 basis points from the prior year period, reaching 24.6%. Operating income as a percentage of revenue (GAAP) also improved. While selling, general, and administrative (SG&A) expenses (GAAP) rose 9.7%, outpacing revenue growth, higher profits from product mix and pricing contributed to stronger overall margins. Investments in compensation and facility upgrades drove the rise in SG&A expenses, but management stated these costs are in support of future scalability. The company accelerated adoption of its online ordering system, which now handles roughly 58% of specialty customer orders in the US as of Q1 FY2025, up from 48% at the end of FY2023. This investment in the digital channel supports operational efficiency. Internationally, the Middle East segment displayed better-than-expected performance, supported by a new facility. Looking Ahead: Guidance and What to Watch Management moderately raised its full-year FY2025 guidance, with revenue expectations now between $4.0 billion and $4.06 billion. Gross profit (GAAP) outlook increased to a range of $964 million to $979 million, and Adjusted EBITDA—an earnings metric excluding interest, taxes, depreciation, and amortization—was guided to $240 million to $250 million. These updates reflect ongoing strength in core categories and digital initiatives, while also indicating a measured approach given economic uncertainties such as potential tariff adjustments and input cost swings. For the quarters ahead, investors will want to watch Margin trends, SG&A expense ratios, and management of the company's debt load—$690 million in long-term obligations as of June 27, 2025—remain important markers to watch. Chefs' Warehouse does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
Globe and Mail
29 minutes ago
- Globe and Mail
CSW Industrials (CSWI) Q1 Revenue Up 17%
Key Points Revenue rose 16.6% in Q1 fiscal 2026, but missed analyst expectations by 17.5% (GAAP). Adjusted earnings per share (Non-GAAP) grew 2.5%, but were 10.1% below estimates. Organic growth declined 2.8%, and gross margin (GAAP) shrank to 43.8% due to cost inflation and product mix. These 10 stocks could mint the next wave of millionaires › CSW Industrials (NYSE:CSW), an industrials company specializing in heating, ventilation, air conditioning, and refrigeration (HVAC/R), plumbing, and building products, reported its earnings for the quarter ended June 30, 2025, on July 31, 2025. The most notable news was that revenue reached a record $263.6 million in the fiscal first quarter, up 16.6% from the prior year, but still fell well below analyst estimates. Adjusted earnings per share (EPS) came in at $2.85, also missing consensus. Despite record headline numbers driven by acquisitions, underlying organic sales fell 2.8%, and profit margins narrowed. The quarter showed mixed results amid ongoing integration costs, tariff headwinds, and softness in key sectors. Metric Q1 fiscal 2026(Quarter Ended June 30, 2025) Q1 fiscal 2026 Estimate Q1 fiscal 2025(Quarter Ended June 30, 2024) Y/Y Change EPS (Non-GAAP) $2.85 $3.17 $2.78 2.5% Revenue $263.6 million $319.35 million $226.2 million 16.6% Operating Income $54.9 million $55.1 million -0.4% EBITDA $68.7 million $65.3 million 5.2% Free Cash Flow $57.7 million $59.6 million -3.2% Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report. Business overview and recent focus CSW Industrials operates across three main segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. Its products include HVAC/R components, specialty lubricants, and safety solutions, targeting end markets such as HVAC/R, plumbing, general industrial, architectural building products, energy, mining, and rail. The company has recently focused on expanding its reach in value-added HVAC/R and plumbing products through acquisitions. The ability to balance organic growth, effective acquisition integration, and margin management remains a key success factor for the business. Quarter highlights: Results, drivers, and segment details The quarter saw reported revenue up 16.6% from the prior year, with growth from the acquisition of Aspen Manufacturing, PSP Products, and PF WaterWorks more than offsetting a decline in organic revenue. However, organic revenue actually declined by 2.8%, with softness in major end markets dampening underlying performance even as acquired businesses contributed top-line growth. Gross profit grew by 7.5%, but gross margin fell sharply compared to last year. The margin drop, from 47.5% to 43.8%, resulted from lower-margin contributions from acquired businesses and ongoing tariff and input cost pressures. Operating expenses increased due to the broader company scope and integration efforts, but represented a slightly lower share of revenue, reflecting attention to cost control. Operating income came in essentially flat with last year, while EBITDA rose 5.3%. Despite these records, the margin contraction is noteworthy. Free cash flow, which measures cash left after capital expenditures and is an important indicator of financial flexibility, fell 3.2% from the prior year. The company borrowed $135 million to help fund acquisitions but paid back $40 million, leaving net leverage at a low 0.2 times EBITDA. Performance varied across business segments. In Contractor Solutions, revenue rose 22.6%, with growth from acquisitions more than offsetting a decline in organic revenue; organic revenue dropped 4.6%. Operating profit in the segment grew, but gross margin shrank to 43.8% due to acquisition mix and sales mix/volume leverage. Specialized Reliability Solutions revenue was flat, but operating income tumbled 26.7% as commodity costs and one-time consolidation expenses weighed on profitability. The Engineered Building Solutions division posted a modest revenue increase, but its operating income fell, reflecting tariff impacts and ongoing investment in sales and research and development. The quarterly dividend remained steady at $0.27 per share. Products and acquisitions: Expanding capabilities This period saw the continued integration of Aspen Manufacturing, a producer of air handlers and evaporator coils for HVAC/R systems. These components are used chiefly for repair and replacement in building climate control systems. The acquisition emphasizes US-based manufacturing, which can help limit the effect of international tariffs on imported goods. CSW Industrials' acquisition strategy in the HVAC/R and plumbing categories is designed to strengthen its portfolio of niche, value-added products. The company has further raised research and development spending in Engineered Building Solutions, working on new fire and smoke protection solutions and related architectural products, though these investments contributed to near-term margin pressure. Financial outlook and investor considerations Management reaffirmed its outlook for fiscal 2026, expecting full-year organic revenue growth and adjusted EBITDA growth for each segment. For fiscal 2026, consolidated earnings per share are also expected to rise, though growth will trail EBITDA gains due to a higher share count, interest costs from acquisition funding, and increased amortization. Leaders cited ongoing risks tied to tariffs, input inflation, and the challenge of restoring profitability in newly acquired units with thinner margins. No specific quarterly guidance was provided. The quarterly dividend was held steady at $0.27 per share. Looking ahead, investors may want to watch for improvement in organic sales growth, gross and EBITDA margin recovery, and successful integration of recently acquired operations -- all of which are likely to shape the company's performance in the coming quarters. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 29, 2025
Globe and Mail
an hour ago
- Globe and Mail
Robinhood (HOOD) Q2 Revenue Jumps 45%
Key Points Robinhood Markets (NASDAQ:HOOD) reported GAAP earnings and revenue for Q2 2025 well ahead of analyst expectations, driven by strong transaction-based and net interest revenues. Active customer metrics and platform assets both reached record highs, with 26.5 million funded customers and $279 billion in platform assets. Operating expenses rose with acquisition integration, while management updated full-year 2025 guidance for higher costs due to scaling investments. These 10 stocks could mint the next wave of millionaires › Robinhood Markets (NASDAQ:HOOD), a leading commission-free retail investing platform, reported its second quarter fiscal 2025 earnings on July 30, 2025. The company posted a substantial beat on both GAAP earnings and revenue, fueled by robust growth across transaction-based and net interest income. Earnings per share (GAAP) came in at $0.42, surpassing the consensus estimate of $0.31. Revenue (GAAP) reached $989 million, topping analyst expectations by $74.4 million. Compared to the prior year period, GAAP revenue rose 45% and net income increased 105%. Management described the quarter as one marked by accelerated innovation, stronger customer engagement, and continued expansion, although it did face higher expenses related to recent acquisitions and product rollouts. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP) $0.42 $0.31 $0.21 100% Revenue (GAAP) $989 million $914.6 million $682 million 45% Net Income (GAAP) $386 million $188 million 105% Adjusted EBITDA (Non-GAAP) $549 million $301 million 82.4% Adjusted Operating Expenses and SBC (Non-GAAP) $522 million $493 million 5.9% Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Recent Focus Robinhood Markets is best known for its mobile-first investing app, offering users commission-free trading in stocks, options, exchange-traded funds (ETFs), and cryptocurrencies. Its platform is built for new and experienced investors alike, aiming to simplify access to financial markets through technology and an easy-to-use interface. Recently, the company has prioritized innovation and product expansion as critical factors for growth. Key areas include the launch of new trading tools like Legend (a customizable desktop platform for active traders), rolling out enhanced features in its retirement and Gold subscription services, and accelerating its push into international markets such as the UK and Europe. Maintaining a strong regulatory compliance framework, integrating recent acquisitions, and providing quality user experience have become increasingly important as Robinhood grows its product lineup and global reach. Quarter Highlights: Financial and Strategic Drivers Transaction-based revenues jumped 65% year over year to $539 million, driven by increased trading activity across options, cryptocurrencies, and equities. Options trading revenue hit $265 million, up 46%. Cryptocurrency trading revenue nearly doubled, reaching $160 million, while equities revenue rose to $66 million. The company's net interest revenues climbed 25%, reaching $357 million, reflecting higher interest-earning asset levels and growth in its securities lending program, partly offset by the impact of lower short-term rates. Robinhood continued to show momentum in expanding its customer base. Funded customer accounts reached 26.5 million, up by 2.3 million or 10% year over year. Investment accounts totaled 27.4 million. The company's average revenue per user (ARPU), a key metric for measuring customer monetization, reached $151, a 34% increase from a year ago. Total platform assets increased 99% year-over-year to $279 billion, driven by continued net deposits, acquired assets, and higher equity and cryptocurrency valuations. Net deposits were $13.8 billion, and over the trailing twelve months totaled $57.9 billion, up 41% from the prior year amount. Product innovation was a major feature of the quarter. The Robinhood Gold subscription service, which provides customers with premium features like enhanced interest rates, research access, and the new Gold credit card, reached 3.5 million subscribers, a 76% year-over-year jump. Adoption of the Gold Card crossed 300,000 cardholders. Robinhood launched tokenization features and rolled out Stock Tokens for over 200 U.S. stocks and ETFs in Europe. The new Robinhood Strategies digital advisory service attracted more than 100,000 clients, with assets under management (AUM) reaching over $500 million within four months of launch. On the technology front, the company introduced detailed analytics tools to enhance the trading experience for active users. International and crypto expansion accelerated. The company made its Legend trading platform available to all UK customers and brought its crypto services to 30 European countries. The closed acquisition of Bitstamp, a large crypto exchange, and a pending deal for WonderFi, support an expanding global crypto and trading footprint. Notable customer and trading metrics include $517 billion in equity trading volume (up 112% year-over-year), 515 million options contracts traded (up 32% year-over-year), and $28 billion in crypto trading through the main app (up 32% year-over-year). Bitstamp added $7 billion in crypto trading volume in June 2025, its first post-acquisition month. Retirement products also saw strong inflows, with assets under custody (AUC) for retirement rising to $19.0 billion, up 118% year-over-year. Rising operating expenses and acquisition integration costs were key factors. Total operating expenses reached $550 million, up 12% year-over-year, while adjusted operating expenses and share-based compensation (SBC) (non-GAAP) landed at $522 million, an increase of 6% year-over-year. The company pointed to Bitstamp integration as a major contributor to the expense uptick. Adjusted EBITDA, a measure of operating performance that excludes interest, taxes, and certain non-cash costs, jumped 82% to $549 million, with margins expanding to 56%. Net income (GAAP) more than doubled to $386 million, while the net margin (GAAP) reached 39%, rising from 28% a year ago. Share repurchases totaled $124 million, with $703 million bought back over the past twelve months. Looking Ahead: Guidance and Watch Areas Management updated its full-year 2025 guidance for adjusted operating expenses and SBC (non-GAAP) to $2.15–2.25 billion, reflecting $65 million in additional costs tied to integrating Bitstamp. There were no specific forecasts given for revenue, EPS, or net interest income. Management noted continued strong trends in July 2025, citing about $6 billion in net deposits and high trading activity at the start of the third quarter. For investors, areas to watch in the coming quarters include the impact of falling interest rates on net interest revenue, any further increases in operating expenses related to ongoing acquisitions, and continued growth in new products and geographies. Management noted that a 25 basis point drop in interest rates would represent a $50 million revenue headwind on a standalone basis. Internally, the company's ability to balance innovation and scaling costs, while managing regulatory compliance across a larger footprint, will remain critical as it expands globally and enters new asset classes. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 29, 2025
