Wednesday, March 29, 2023
HomeMarketAnalog Devices stock gains as chip company gives upbeat earnings forecast

Analog Devices stock gains as chip company gives upbeat earnings forecast

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Analog Devices Inc. shares
were heading more than 2% higher in premarket action Wednesday after the semiconductor company cited “resilient” demand in its latest quarter and issued an upbeat profit forecast for the current period. The company posted fiscal first-quarter net income of $961.5 million, or $1.88 a share, compared with $280.1 million, or 53 cents a share, in the year-prior quarter. On an adjusted basis, Analog Devices earned $2.75 a share, up from $1.94 a share a year before, while analysts tracked by FactSet were modeling $2.61 a share. Revenue rose to $3.25 billion from $2.68 billion, whereas the FactSet consensus was for $3.25 billion. “Encouragingly, despite the macro uncertainty, demand remains resilient in our industrial and automotive markets, driven by continued momentum across secular growth areas, such as automation and electrification,” Chief Executive Vincent Roche said in a release. For the fiscal second quarter, Analog Devices expects $3.1 billion to $3.3 billion in revenue, along with $2.65 a share to $2.85 a share in adjusted earnings. The FactSet consensus was for $3.0 billion in revenue and $2.42 a share in adjusted earnings. The company also announced that it was boosting its quarterly dividend to 86 cents a share. Analog Devices previously paid out a quarterly dividend of 76 cents a share.


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