Manufacturer of analog chips Analog Devices (NASDAQ:ADI) will be reporting results this Wednesday before market hours. Here’s what to expect.
Analog Devices beat analysts’ revenue expectations last quarter, reporting revenues of $3.62 billion, up 37.2% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ operating income estimates.
Is Analog Devices a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Analog Devices’s revenue to grow 36.2% year on year, improving from the 24.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Analog Devices has a history of exceeding Wall Street’s expectations.
Looking at Analog Devices’s peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Monolithic Power Systems delivered year-on-year revenue growth of 47.6%, beating analysts’ expectations by 8.6%, and Impinj reported revenues up 10.7%, topping estimates by 3.5%. Monolithic Power Systems traded up 8.3% following the results while Impinj was also up 5.9%.
Read our full analysis of Monolithic Power Systems’s results here and Impinj’s results here.
There has been positive sentiment among investors in the analog semiconductors segment, with share prices up 8.2% on average over the last month. Analog Devices is up 5.1% during the same time and is heading into earnings with an average analyst price target of $457.73 (compared to the current share price of $391.30).
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