Chipmaker Analog Devices (ADI) reported a 21% jump in earnings for the first quarter helped by lower costs and expenses as well as a decline in income taxes provision. The results exceeded analysts’ expectations, aided by the ongoing 4G upgrades and initial 5G deployments.
Net income climbed 21% to $355 million and earnings jumped 22% to $0.95 per share. Adjusted earnings dropped by 11% to $1.33 per share.
Revenue declined 2% to $1.54 billion. The top line was hurt by a fall in three segments. However, revenue came in at the high-end of the company’s guidance range with continued strength in its communications market related to ongoing 4G upgrades and initial 5G deployments.
Industrial revenue declined by 7% year-over-year to $728.1 million and automotive revenue inched down by 2% to $259.5 million. Consumer revenue plunged 21% to $208.3 million while communications revenue jumped by 34% to $345.2 million.
During the first quarter, the management returned more than $400 million to shareholders through dividends and share repurchases. Meanwhile, the board of directors declared a cash dividend of $0.54 per share, to be paid on March 12, 2019, to all shareholders of record on March 1, 2019.
Encouraged by the strong results, the company expects its second-quarter adjusted earnings of $1.30 per share, plus or minus seven cents. The guidance for unadjusted earnings and revenues is $0.94 per share, plus or minus seven cents, and $1.50 billion, plus or minus $50 million, respectively. The company’s second-quarter guidance came in line with market expectations.
Shares of Analog Devices opened higher on Wednesday and is trading in the green territory. The stock has risen over 22% in the past year and over 23% in the past three months.
Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.
Most Popular
Infographic: How Alaska Air Group (ALK) performed in Q1 2024
Alaska Air Group (NYSE: ALK) reported its first quarter 2024 earnings results today. Total operating revenue increased 2% year-over-year to $2.23 billion. Net loss amounted to $132 million, or $1.05 per
KMI Earnings: Kinder Morgan Q1 2024 adjusted profit increases; revenue drops
Kinder Morgan, Inc. (NYSE: KMI) reported higher adjusted earnings for the first quarter of 2024 despite a decrease in revenues. The energy infrastructure company also issued guidance for the full
What to expect when Altria (MO) reports first quarter 2024 earnings results
Shares of Altria Group, Inc. (NYSE: MO) stayed green on Wednesday. The stock has dropped 8% over the past one month. The tobacco giant is scheduled to report its first