Analog Devices Earnings: Here’s Why Investors are Selling Shares Now

Analog Devices Inc. (NYSE:ADI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.82%.

Analog Devices Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.79% to $0.57 in the quarter versus EPS of $0.56 in the year-earlier quarter.

Revenue: Decreased 1.29% to $674.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Analog Devices Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.54. It beat the average revenue estimate of $671.79 million.

Quoting Management: “ADI delivered solid results for the third quarter. Compared to the prior quarter, revenue increased by 2% and our operating model produced excellent leverage, driving diluted EPS growth of 10%, excluding special items,” said Vincent Roche, President and CEO. “Profitability and cash flow were very strong, and we returned $105 million to our shareholders through cash dividends.”

Key Stats (on next page)…

Revenue increased 2.27% from $659.25 million in the previous quarter. EPS increased 9.62% from $0.52 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.59 and has not changed. For the current year, the average estimate has moved down from a profit of $2.11 to a profit of $2.10 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)