Categories AlphaGraphs, Earnings, LATEST, Technology

Analog Devices beats Q3 estimates; provides dismal outlook

Analog Devices (NASDAQ: ADI) surpassed the bottom line and top-line estimates for the third quarter of 2019. However, the weaker-than-expected guidance for the fourth quarter dragged ADI shares into the negative territory.

The semiconductor maker reported adjusted earnings of $1.26 per share on revenue of $1.48 billion. Wall Street had expected the company to post earnings of $1.22 per share on revenue of $1.45 billion. ADI shares slid about 2% in the pre-market trading hours.

Analog Devices (ADI) Q3 2019 earnings results

Analog Devices’ net income for the quarter ended August 3, 2019, dropped to $362.4 million or $0.97 per share from a net income of $408.6 million or $1.08 per share in the prior-year quarter.

You may also like: Analog Devices (ADI) Q3 2019 Earnings Conference Call Transcript

“Revenue and operating margins came in above the midpoint of guidance as ongoing broad-based weakness compared to the year ago quarter was balanced by growth in new areas such as 5G and electric vehicles,” said CEO Vincent Roche.

He added, “While these uncertain times do not seem to be abating in the near term, ADI has successfully navigated macroeconomic challenges many times before.”

For the fourth quarter of fiscal 2019, Analog Devices expects revenue to be $1.45 billion, +/- $50 million. The company estimates GAAP EPS to be $0.86, +/- $0.07, and adjusted EPS to be $1.22, +/- $0.07. 

Related: Intel stock jumps as it surpasses Q2 estimates; Apple to buy its smartphone modem business for $1 billion

The Board of Directors declared a quarterly cash dividend of $0.54 per  share, which will be paid on September 11, 2019 to all shareholders of record as of August 30, 2019. The company returned over $300 million to shareholders in the third quarter through dividends and share repurchases.

ADI stock, which reached its 52-week high ($124.79) on July 24, has advanced 29% so far this year and 18% in the past 52 weeks.

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

IPO Alert: Here’s what to look for when CaliberCos goes public

The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is

CarMax (KMX) Stock: Does the current dip offer a buying opportunity?

The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with

Ultimax Digital gears up for $10mln IPO. Here’s all you need to know

The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax

Add Comment
Viewing Highlight