Analog Devices Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Analog Devices, Inc. (NYSE:ADI) will unveil its latest earnings on Wednesday, February 22, 2012. Analog Devices designs, manufactures, and markets analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications.

Analog Devices, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 48 cents per share, a decline of 27.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 60 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 48 cents during the last month. Analysts are projecting profit to rise by 16.2% compared to last year’s $2.28.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the fourth quarter of the last fiscal year, it missed the mark by 3 cents as a result of reporting profit of 60 cents against an estimate of net income of 63 cents per share. In the third quarter of the last fiscal year, the company fell short of forecasts by 2 cents.

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Wall St. Revenue Expectations: Analysts predict a decline of 9.1% in revenue from the year-earlier quarter to $662.3 million.

Analyst Ratings: Analysts are optimistic about this stock, with 14 analysts rating it as a buy, none rating it as a sell and seven rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 18.4% to $183.5 million (60 cents a share) from $225 million (74 cents a share) the year earlier, missing analyst expectations. Revenue fell 7% to $716.1 million from $770 million.

Key Stats:

A year-over-year revenue decrease in the fourth quarter of the last fiscal year interrupted a streak of three consecutive quarters of revenue increases. Revenue rose 5.2%in the third quarter of the last fiscal year, 18.3% in the second quarter of the last fiscal year and 20.8% in the first quarter of the last fiscal year.

The decrease in profit in the fourth quarter of the last fiscal year broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 10.2% in the third quarter of the last fiscal year, 44.7% in the second quarter of the last fiscal year and 84.4% in the first quarter of the last fiscal year.

Stock Price Performance: Between December 19, 2011 and February 16, 2012, the stock price had risen $6.90 (20.6%), from $33.46 to $40.36. The stock price saw one of its best stretches over the last year between November 25, 2011 and December 5, 2011, when shares rose for seven straight days, increasing 12.2% (+$3.91) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 11.9% (-$4.34) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com