Latest news with #VincentRoche
Yahoo
22-05-2025
- Business
- Yahoo
Robert W. Baird Maintains a Buy Rating on Analog Devices (ADI) After Q2 Report
On May 22, Tristan Gerra of Robert W. Baird maintained a Buy rating on Analog Devices, Inc. (NASDAQ:ADI) with a price target of $250, after the company reported its fiscal second-quarter results for 2025. A technician working on power management in a semiconductor factory. Analog Devices, Inc. (NASDAQ:ADI) grew revenue by 22% year-over-year to $2.6 billion, whereas the adjusted EPS soared 32% year-over-year to $1.85. Both indicators topped analysts' expectations, with revenue surpassing expectations by $134.02 million and EPS ahead of the consensus by $0.15. Chair and CEO Vincent Roche noted: 'ADI delivered second-quarter revenue and earnings per share above the high end of guidance. Against a backdrop of global trade volatility, our performance reflects the ongoing cyclical recovery and the strength and resiliency of our business model' Analog Devices, Inc. (NASDAQ:ADI) experienced increased bookings throughout the second quarter, thereby growing its backlog. As a result, for the third quarter, the company expects $2.75 billion in revenue, against a consensus of $2.6 billion, and EPS of $1.92 versus a consensus of $1.82. Gerra believes the company is well positioned with its product specifications and performance of its Automotive and Industrial segments, thus anticipating Analog Devices, Inc. (NASDAQ:ADI) to achieve its growth targets. While we acknowledge the potential of ADI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADI and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Why Analog Devices Stock Fell by More Than 4% Today
The company posted some strong growth numbers in its fiscal second-quarter fundamentals. It saw a bulge in demand that might not be repeatable, however. 10 stocks we like better than Analog Devices › Semiconductor company Analog Devices (NASDAQ: ADI) published its latest quarterly earnings report Thursday morning, but despite its estimates-beating performance, investors sold out of the stock. They left it with a more than 4% drop in share price on the day, on concerns that a lingering tariff war could badly affect its fundamentals. That decline compared unfavorably to the S&P 500's (SNPINDEX: ^GSPC) marginal slide. For its fiscal second quarter of 2025, Analog Devices' revenue came in at $2.64 billion, 22% higher year over year. Headline net income grew far more robustly, increasing by almost 89% to just under $570 million. On a non-GAAP (generally accepted accounting principles) adjusted, per-share basis, the company netted a profit of $1.85, up from the $1.40 it booked in the same period of fiscal 2024. Analysts were expecting lower numbers. Their consensus projection for revenue was $2.51 billion, and that for adjusted profitability was $1.70 per share. In its earnings release, Analog Devices attributed the double-digit gains to both internal and external factors. It quoted CEO Vincent Roche as saying, "Against a backdrop of global trade volatility, our performance reflects the ongoing cyclical recovery, and the strength and resiliency of our business model." During the quarter, Analog Devices took in nearly $850 million for its products used in current-generation automobile systems. This critical part of its business grew by 24% year over year; however, the company said this was due in part to heightened demand in anticipation of the Trump administration's tariffs. The company's personal electronics business was also affected similarly. That's concerning, as it's very likely such demand isn't sustainable, no matter how the tariff war plays out. Nevertheless, Analog Devices is still anticipating growth. It proffered guidance for its current (third) fiscal quarter, stating that revenue should be $2.65 billion to $2.85 billion, and adjusted net income $1.82 to $2.02 per share. On average, analysts are estimating $2.62 billion on the top line, and $1.82 per share for adjusted profitability. Before you buy stock in Analog Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Analog Devices Stock Fell by More Than 4% Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Analog Devices CFO Confirms Cyclical Upturn, Sees 'Continued Growth'
Analog Devices, Inc (NASDAQ:ADI) shares are trading higher in the premarket session on Thursday after the company reported fiscal second-quarter results. The company's quarterly revenue increased 22% year-on-year to $2.64 billion, beating the analyst consensus estimate of $2.51 billion. Adjusted EPS of $1.85 beat the analyst consensus estimate of $1.70. Analog Devices' Industrial revenue grew by 16.8% Y/Y to $1.16 billion. Automotive revenue climbed 24.2% Y/Y to $849.51 revenue grew by 29.7% to $317.76 million, and Communications revenue increased by 32.1% to $315.06 million. The adjusted gross margin improved by 270 bps to 69.4%. The adjusted operating margin climbed by 220 bps to 41.2%. Analog Devices held $2.38 billion in cash and equivalents as of May 3, 2025, generating $819.5 million in operating cash flow. The Analog Devices Board declared a quarterly cash dividend of $0.99 per outstanding share of common stock. The dividend will be paid on June 18, 2025, to all shareholders of record at the close of business on June 4, 2025. CEO and Chair Vincent Roche said that against a backdrop of global trade volatility, the company's performance reflects the ongoing cyclical recovery and the strength and resiliency of its business model. CFO Richard Puccio said second-quarter bookings accelerated across all end markets and regions, resulting in continued sequential backlog growth. The improving demand signals it saw throughout its fiscal second quarter support its outlook for continued growth in the third quarter and reinforce its view that it is in a cyclical upturn. Analog Devices expects fiscal third-quarter 2025 revenue of $2.65 billion-$2.85 billion, above the analyst consensus estimate of $2.62 billion. The company projects adjusted EPS of $1.82-$2.02 against the analyst consensus estimate of $1.83. Price Action: ADI stock is trading higher by 3.15% to $229.22 premarket at last check Thursday. Read Next:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ANALOG DEVICES (ADI): Free Stock Analysis Report This article Analog Devices CFO Confirms Cyclical Upturn, Sees 'Continued Growth' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
CNA
22-05-2025
- Automotive
- CNA
Analog Devices forecasts upbeat quarterly revenue on auto, industrial demand
Analog Devices forecast third-quarter revenue and profit above Wall Street expectations on Thursday, betting on upbeat demand for its chips used in the automotive and industrial sectors, lifting its shares more than 3 per cent in premarket trading. The analog chip industry is seeing a gradual recovery in key sectors such as automotive and industrial, with demand also boosted by shipments of personal electronics being pulled forward amid the U.S.' shifting tariff policies. "Against a backdrop of global trade volatility, our performance reflects the ongoing cyclical recovery," CEO and Chair Vincent Roche said. Analog Devices projected third-quarter revenue of $2.75 billion, plus or minus $100 million, above estimates of $2.62 billion, according to data compiled by LSEG. It forecast adjusted per-share earnings of $1.92, plus or minus 10 cents, above Wall Street estimates of $1.83 per share. Companies are also seeing a revival in analog chip demand after several quarters of clearing inventory that had accumulated during the pandemic. Peer Texas Instruments also forecast second-quarter revenue above Wall Street estimates last month. For the second quarter ended May 3, the company reported revenue rose 22 per cent to $2.64 billion, beating analysts' estimate of $2.51 billion. Analog Devices supplies semiconductors across sectors including automotive, industrial automation and consumer electronics and counts companies such as Boeing among customers. The industrial unit, its biggest by revenue share, saw sales rise 17 per cent to $1.16 billion, while automotive sales rose 24 per cent to $849.5 million in the quarter. Sales at the consumer unit, which features chips for personal electronics, rose 30 per cent. Global shipments of personal computers rose 9.4 per cent in the first quarter of this year as PC makers boosted consignments to the United States in anticipation of sweeping tariffs, according to data from research firm Canalys.
Yahoo
22-05-2025
- Business
- Yahoo
Analog Devices (NASDAQ:ADI) Reports Strong Q1, Guides for Strong Sales Next Quarter
Manufacturer of analog chips Analog Devices (NASDAQ:ADI) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 22.3% year on year to $2.64 billion. On top of that, next quarter's revenue guidance ($2.75 billion at the midpoint) was surprisingly good and 4.5% above what analysts were expecting. Its non-GAAP profit of $1.85 per share was 9.1% above analysts' consensus estimates. Is now the time to buy Analog Devices? Find out in our full research report. Revenue: $2.64 billion vs analyst estimates of $2.51 billion (22.3% year-on-year growth, 5.2% beat) Adjusted EPS: $1.85 vs analyst estimates of $1.70 (9.1% beat) Adjusted Operating Income: $1.09 billion vs analyst estimates of $1.01 billion (41.2% margin, 7.8% beat) Revenue Guidance for Q2 CY2025 is $2.75 billion at the midpoint, above analyst estimates of $2.63 billion Adjusted EPS guidance for Q2 CY2025 is $1.92 at the midpoint, above analyst estimates of $1.82 Operating Margin: 25.7%, up from 17.9% in the same quarter last year Free Cash Flow Margin: 27.6%, down from 28.7% in the same quarter last year Inventory Days Outstanding: 135, in line with the previous quarter Market Capitalization: $110.2 billion "ADI delivered second quarter revenue and earnings per share above the high end of guidance," said Vincent Roche, CEO and Chair. Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Analog Devices's 12.1% annualized revenue growth over the last five years was solid. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Analog Devices's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 12.7% over the last two years. This quarter, Analog Devices reported robust year-on-year revenue growth of 22.3%, and its $2.64 billion of revenue topped Wall Street estimates by 5.2%. Adding to the positive news, Analog Devices's growth inflected positively this quarter, indicating that the recent cyclical downturn is likely in the rearview mirror. Company management is currently guiding for a 18.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 11.2% over the next 12 months, an improvement versus the last two years. This projection is commendable and implies its newer products and services will catalyze better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Analog Devices's DIO came in at 135, which is 14 days above its five-year average, suggesting that the company's inventory levels are higher than what we've seen in the past. We were impressed by how significantly Analog Devices blew past analysts' EPS expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 3.6% to $230 immediately following the results. Analog Devices had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
