Categories AlphaGraphs, Earnings, Technology

5G deployment boosts Analog Devices Q1 results

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.

Analog Devices first quarter 2019 earnings snapshot
Analog Devices Q1 2019 Earnings Infographic

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

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Lennar (LEN) believes that despite near-term challenges, the long-term prospects for housing remain strong

Shares of Lennar Corporation (NYSE: LEN) were down 3% on Monday. The stock has dropped 36% year-to-date and 25% over the past 12 months. The homebuilder delivered mixed results for

KB Home (KBH): What did and did not work for the homebuilder in the third quarter

Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top