Shares of Analog Devices (ADI) gained in pre-market trading after the company reported better-than-expected Fiscal fourth-quarter results. The semiconductor company’s adjusted earnings dropped by 17% to $1.67 per share, still above consensus estimates of $1.64 per share.
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Furthermore, the company’s revenues declined by 10% year-over-year to $2.44 billion in the third quarter. This surpassed Street estimates of $2.41 billion.
Vincent Roche, CEO and Chair commented, “While unprecedented customer inventory headwinds drove a historic revenue decline during fiscal 2024, we maintained operating margins north of 40%, which is a testament to our business model’s resilience.”
ADI Announces Quarterly Dividend
Additionally, ADI announced a quarterly cash dividend of $0.92 per outstanding share payable on December 20 to all shareholders of record at the close of business on December 9, 2024.
ADI Issues Q1 Outlook
Looking ahead, the company expects Fiscal Q1 revenues of $2.35 billion, which can increase or decrease by $100 million. Furthermore, adjusted earnings are likely to be $1.53 per share, with a variance of $0.10 per share. For reference, analysts were expecting the company to report earnings of $1.57 per share on revenues of $2.34 billion.
Is ADI a Good Stock to Buy?
Analysts remain bullish about ADI stock, with a Strong Buy consensus rating based on six Buys and two Holds. Over the past year, ADI has increased by more than 20%, and the average ADI price target of $251.67 implies an upside potential of 12.6% from current levels. These analyst ratings are likely to change following ADI’s results today.
