Key Moments
- Analog Devices reported third-quarter revenue of $4.02 billion, a 40% year-over-year increase and above estimates of $3.92 billion.
- The company projected fourth-quarter revenue of $4.3 billion, plus or minus $100 million, topping the consensus estimate of $4.07 billion.
- Fourth-quarter adjusted EPS is expected at $3.86, above analyst expectations of $3.54, while the stock has gained about 39% so far this year and was flat in premarket trading.
Strong Outlook on AI-Linked Power Management Demand
Aug 19 (Reuters) – Analog Devices issued a fourth-quarter forecast for revenue and profit that exceeded Wall Street projections, supported by sustained demand for its power-management chips deployed in data centers and industrial environments as spending tied to artificial intelligence continues to increase.
The company is positioned to capture rising investment in AI-oriented computing, which is driving higher requirements for components that manage power and transport large volumes of data. Its products are used broadly across data center infrastructure, factory automation systems and contemporary automotive platforms.
Third-Quarter Results Beat Expectations
For the third quarter, Analog Devices posted revenue of $4.02 billion, an increase of 40% from the same period a year earlier, and above analyst expectations of $3.92 billion.
Adjusted earnings per share for the quarter came in at $3.45, surpassing consensus estimates of $3.33.
CEO Vincent Roche said the company benefited from broad-based demand in the third quarter, and that investments in innovation, customer relationships and manufacturing capabilities position it to capitalize on opportunities in the AI era.
Fourth-Quarter Guidance Beats Street Forecasts
The Wilmington, Massachusetts-based company projected fourth-quarter revenue of $4.3 billion, plus or minus $100 million. This compares with the average analyst estimate of $4.07 billion, based on data compiled by LSEG.
Analog Devices also guided for fourth-quarter adjusted EPS of $3.86, above the market expectation of $3.54.
| Metric | Reported / Guided | Analyst Estimate |
|---|---|---|
| Q3 Revenue | $4.02 billion | $3.92 billion |
| Q3 Adjusted EPS | $3.45 | $3.33 |
| Q4 Revenue Guidance | $4.3 billion (± $100 million) | $4.07 billion |
| Q4 Adjusted EPS Guidance | $3.86 | $3.54 |
Share Price Performance
Shares of the chipmaker, which have gained about 39% so far this year, were unchanged in premarket trading.
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