Categories AlphaGraphs, Earnings, LATEST, Technology

Analog Devices stock falls on weak profit forecast

Analog Devices (ADI) said its earnings for the third quarter jumped six times, compared to last year when the bottom-line was dragged by some acquisition-related expenses and taxes. The stock opened Wednesday’s trading lower after the chipmaker guided fourth-quarter earnings below street view.

Net income jumped to $414.5 million, or $1.10 per share, from $68.9 million, or $0.18 per share a year ago. Non-GAAP EPS increased to $1.53 from $1.26 in the year-ago period.

Revenue grew 9.7% to $1.6 billion, primarily benefited from continued high demand for its products across B2B markets. For the fourth quarter, B2B sales are projected to increase low double digits year-over-year.

For the fourth quarter, the company predicts revenue of about $1.57 billion and EPS of about $1.07. Gross margin is anticipated to be about 68% and operating margin is projected to be 32% to 33%. Operating expenses are expected to be about $566 million for the fourth quarter.

Analog Devices third quarter 2018 earnings
Analog Devices Q3 2018 Earnings Infographics

“Our continued strong growth and profitability allowed us to achieve our leverage target three quarters ahead of our plan, and reinstate our share repurchase program as we enter the fourth quarter,” said Vincent Roche, President and CEO of Analog Devices.

In a separate release, Analog Devices said it has reinstated its share repurchase program and that its Board of Directors has authorized the company to purchase an additional $2 billion of its common stock.

The board of directors has also declared a quarterly cash dividend of $0.48 per outstanding share of common stock. The dividend is payable on September 12, 2018, to all shareholders of record on August 31, 2018.

The stock had risen over 23% in the past year and more than 7% year-to-date.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Analog Devices stock falls on weak profit forecast

Comments are closed.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top