Analog Devices Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Analog Devices Inc. (NYSE:ADI) reported its results for the third quarter. Analog Devices, Inc. designs, manufactures and markets analog, mixed-signal and digital signal processing integrated circuits used in industrial, communication, computer and consumer applications.

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Analog Devices Earnings Cheat Sheet for the Third Quarter

Results: Net income for the semiconductor company rose to $219.9 million (71 cents per share) vs. $199.5 million (65 cents per share) in the same quarter a year earlier. This marks a rise of 10.2% from the year earlier quarter.

Revenue: Rose 5.2% to $757.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ADI fell short of the mean analyst estimate of 73 cents per share. It fell short of the average revenue estimate of $780.6 million.

Quoting Management: “After an unusually robust second quarter in which our revenue grew by 9% sequentially, revenue in the third quarter declined by 4% on a sequential basis while increasing 5% year-over-year,” said Jerald G. Fishman, President and CEO. “Nevertheless, most end markets remained relatively stable during the third quarter and we believe that most of the revenue shortfall was the result of supply chain recalibration, not a change in underlying demand.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.6 percentage point to 67.2% from the year earlier quarter. Over that span, margins have grown on average 6.3 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 44.7% and in the first quarter, the figure rose 84.4%.

Revenue has risen the past four quarters. Revenue increased 18.3% to $790.8 million in the second quarter. The figure rose 20.8% in the first quarter from the year earlier and climbed 34.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 7 cents, and in the first quarter, it was ahead by one cent.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), National Semicond. Corp. (NYSE:NSM), Intersil Corporation (NASDAQ:ISIL), Linear Technology Corp. (NASDAQ:LLTC), Maxim Integrated Products Inc. (NASDAQ:MXIM), ON Semiconductor Corp. (NASDAQ:ONNN), Silicon Laboratories (NASDAQ:SLAB), Cirrus Logic, Inc. (NASDAQ:CRUS), Broadcom Corporation (NASDAQ:BRCM), and Micrel, Incorporated (NASDAQ:MCRL).

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(Source: Xignite Financials)