Analog Devices

Analog Devices (ADI) is heading for a recovery after managing the downcycle well with a stronger than expected fiscal Q3 outlook, Morgan Stanley said in a note. “The company has excelled in managing the downcycle and remains our preferred name as we enter an analog upcycle,” Morgan Stanley said in the report. Among the reasons for optimism were improving bookings in all markets, rising sell-through in Q3 from Q2, and decreasing channel inventory, according to the report. “The company validated our June quarter inflection thesis and has given reason to be encouraged that we should start thinking about the strength of the recovery from here,” the report said. After the results, Morgan Stanley revised its estimates for 2024 to $9.382 billion with a margin of 68% and EPS of $6.40, compared with $9.035 billion, 68.2%, and $5.70 previously. Morgan Stanley raised its price target on the stock to $260 from […]

The application of “intelligent edge” to industrial processes will have a positive impact on energy efficiency and environmental sustainability, Martin Cotter, Analog Devices’ (ADI) president of Europe, the Middle East and Africa, said at the Mobile World Congress in Barcelona. “Edge” is a term used in technology to describe where data is generated such as a smartphone, a robot in a factory or sensory technology in a hospital. Adding cloud capabilities to the site where data is generated is called “intelligent edge.” “Transformation of industry through digitalization of factories and buildings is going to have such a big impact on sustainability,” Cotter said. “The need to drive more efficiency on every Joule of energy is critical. Everybody talks about energy. So, therefore, having smarter edge is one way to really deliver on that efficiency.” Industrial output increased about 90 times from 1820 to 2020, but that came at a cost:

Analog Devices, Inc. (NASDAQ:ADI) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/22/2024 12.58% Truist Securities $226 → $222 Maintains Buy 02/22/2024 3.96% Goldman Sachs $191 → $205 Maintains Buy 02/22/2024 16.64% Keybanc $220 → $230 Maintains Overweight 02/20/2024 3.96% Cantor Fitzgerald → $205 Reiterates Neutral → Neutral 02/12/2024 3.96% Cantor Fitzgerald → $205 Reiterates Neutral → Neutral 01/29/2024 3.96% Cantor Fitzgerald → $205 Reiterates Neutral → Neutral 01/23/2024 3.96% Cantor Fitzgerald → $205 Initiates Coverage On → Neutral 01/16/2024 -6.18% Barclays $180 → $185 Maintains Equal-Weight 12/22/2023 — Edward Jones Upgrades Hold → Buy 11/22/2023 9.03% Oppenheimer → $215 Reiterates Outperform → Outperform 11/22/2023 -11.25% Piper Sandler $190 → $175 Maintains Neutral 11/22/2023 6.5% Susquehanna $215 → $210 Maintains Positive 11/22/2023 6.5% UBS $200 → $210 Maintains Buy 11/22/2023 4.47% Truist Securities $213 → $206 Maintains Buy 11/22/2023 11.06% Morgan Stanley

Truist Securities analyst William Stein maintains Analog Devices (NASDAQ:ADI) with a Buy and lowers the price target from $226 to $222.

Analog Devices’ (ADI) forecast for a 16% quarter-over-quarter drop in fiscal Q2 revenue “was slightly worse than expected but in-line with broad-based peers,” Morgan Stanley said in a note Wednesday. The company said Wednesday that it expected fiscal Q2 revenue of $2.10 billion at the midpoint, which Morgan Stanley said is lower than its estimate of $2.39 billion and the Street’s $2.36 billion. “We see reasons to be encouraged across inventory management, margin resilience, and booking improvements,” the firm said. Analog Devices appears to be “better positioned” than peers in the coming quarters, the firm said, adding that the company remains its “preferred name” within the analog space. “At this stage of the cycle we have a preference towards names with higher [average selling price], a lower internal manufacturing footprint, and less automotive exposure,” Morgan Stanley said. Morgan Stanley maintained the overweight rating on Analog Devices stock and cut the

Oppenheimer analyst Rick Schafer reiterated an Outperform rating on Analog Devices, Inc (NASDAQ:ADI) with a price target of $215. The company reported mixed results Wednesday. The first-quarter print was in line, while the second-quarter sales and EPS outlook missed 11% and 19%, respectively. This “expected” cut is ADI’s fourth consecutive cut this correction, the analyst flagged. Hybrid manufacturing supports a normalized gross margin of ~75%. ADI’s product diversification and core position in auto/industrial remain intact, Schafer noted. ADI trades 26x Schafer’s calendar year 2025 EPS vs. analog peer Texas Instruments Inc’s (NASDAQ:TXN) 28x. Rolling correction dampens visibility and pace of recovery in the near term, but the analyst noted a better second half. Schafer noted that ADI’s margin/growth profile, FCF return, and proven execution support a multiple in line with TXN. He sees long-term growth led by auto/ industrial and remains a long-term buyer. Bolton projects second-quarter revenue and EPS of $2.10 billion and $1.39

The following is a summary of the Analog Devices, Inc. (ADI) Q1 2024 Earnings Call Transcript: Financial Performance: Analog Devices reported Q1 revenue of over $2.5 billion, an 8% sequential decrease and a 23% YoY decline. Gross margins dropped from 74% to 67%, mainly due to increased inventory charges and weak demand across all regions. Nevertheless, there is a potential gross margin upturn linked to revenue pickup in the industrial sector. Operating margins stood at 42% and earnings per share at $1.73, exceeding their outlook. The company returned over $4.2 billion to shareholders via dividends and share repurchases, announcing a 7% dividend increase, marking the 20th consecutive year of dividend growth. Q2 revenue is expected to be $2.1 billion, with a projected operating margin of 37% and EPS of $1.26. Business Progress: Despite weak demand in the industrial sector, ADI is taking steps to reduce channel inventory and align sell-in

Analog Devices Reports Fiscal First Quarter 2024 Financial Results — Revenue of more than $2.5 billion with continued growth in Automotive — Operating cash flow of $4.6 billion and free cash flow of $3.2 billion on a trailing twelve-month basis — Returned over $600 million to shareholders through dividends and repurchases in the first quarter — Raised quarterly dividend by 7%, marking the twentieth consecutive year of increase — Appointed Richard C. Puccio as EVP and Chief Financial Officer WILMINGTON, Mass.–(BUSINESS WIRE)–February 21, 2024– Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, today announced financial results for its 14-week fiscal first quarter 2024, which ended February 3, 2024. “ADI delivered first quarter revenue and profitability above the midpoint of our outlook, despite the continued difficult macroeconomic environment,” said Vincent Roche, CEO and Chair. “Consistent with our prior view, we expect customer inventory rationalization to largely subside in our second

Analog Devices Sees Q2 Adj. EPS $1.16-$1.36 Vs $1.57 Est., Revenue $2B-$2.2B Vs $2.36B Est.

Analog Devices said it expects fiscal second-quarter earnings of $1.26 a share, plus or minus 10 cents. Analysts surveyed by FactSet were expecting earnings of $1.56. Revenue expectations of $2.1 billion, plus or minus $100 million, also missed the consensus call of $2.36 billion. For the first quarter ended Feb. 3, the company reported earnings of $1.73 a share on revenue of $2.51 billion. Analysts surveyed by FactSet were expecting Analog Devices to report earnings of $1.71 a share on revenue of $2.5 billion. In the same period the prior year, Analog Devices posted earnings of $2.75 a share on revenue of $3.25 billion. “ADI delivered first quarter revenue and profitability above the midpoint of our outlook, despite the continued difficult macroeconomic environment,” Chief Executive Vincent Roche said in the earnings release.

Analog Devices (ADI) reported fiscal Q1 adjusted earnings Wednesday of $1.73 per diluted share, down from $2.75 a year earlier. Analysts polled by Capital IQ expected $1.71. Revenue for the quarter ended Feb. 3 was $2.51 billion, down from $3.25 billion a year earlier. Analysts surveyed by Capital IQ expected $2.50 billion. The semiconductor company said it expects fiscal Q2 adjusted EPS in a range of $1.16 to $1.36 on revenue of $2 billion to $2.2 billion. Analysts polled by Capital IQ are expecting adjusted EPS of $1.57 on revenue of $2.36 billion. Shares of Analog Devices were down more than 1% in recent Wednesday premarket activity.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target at $193 on a P/E of 22x our CY 25 view of $8.69, above its five-year historical forward average of 20.5x given near bottoming fundamentals. We cut our FY 24 (Oct.) EPS to $6.39 from $7.80 and FY 25’s to $8.13 from $9.66. ADI posted Jan-Q EPS of $1.73 vs. $2.75, beating the $1.71 consensus. Sales fell 23%, better than feared, on declines across industrial (-31%), communications (-37%), and consumer (-22%), while automotive remains resilient (+9%). Although Apr-Q revenue/EPS guide is below expectations, we do expect it to mark the cyclical trough, barring macro pressures that could hit autos. Both gross (69% vs. 73.6%) and operating (42% vs. 51.1%) margins have compressed considerably on lower volume, but we like emphasis on shortening