Analog Devices Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Analog Devices, Inc. (NYSE:ADI) will unveil its latest earnings on Tuesday, August 16, 2011. 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 74 cents per share, a rise of 13.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 70 cents. Between one and three months ago, the average estimate moved up, but it has been unchanged at 74 cents during the last month. For the year, analysts are projecting net income of $2.89 per share, a rise of 21.9% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 75 cents per share against a mean estimate of net income of 68 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $780.6 million in revenue this quarter, a rise of 8.4% from the year ago quarter. Analysts are forecasting total revenue of $3.09 billion for the year, a rise of 12% from last year’s revenue of $2.76 billion.

Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy, none rating it as a sell and nine rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 30.1%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 46.4% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 44.7% while it rose 84.4% in the first quarter and more than twofold in the fourth quarter of the last fiscal year.

The company upped its gross margin by 2.5 percentage points in the in the second quarter. Revenue rose 18.3% while cost of sales rose 9.8% to $256.6 million from a year earlier.

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).

Stock Price Performance: During May 16, 2011 to August 10, 2011, the stock price had fallen $9.63 (-23.9%) from $40.30 to $30.67. The stock price saw one of its best stretches over the last year between October 26, 2010 and November 4, 2010 when shares rose for eight-straight days, rising 11.4% (+$3.57) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 11.8% (-$4.73) over that span. Shares are down $6.56 (-17.6%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.