Analog Devices, Inc. Reports Blockbuster Q4 Earnings
Analog Devices, Inc. (NASDAQ:ADI) shares surged to fresh all-time highs Wednesday morning [Feb 15, 2017 | 8:02am], following its fiscal first quarter results that blew away even the most bullish expectations.
Written by StockNews.com
The Norwood, MA-based semiconductor components maker reported adjusted Q1 EPS of $0.94, which was a full $0.20 better than the Wall Street consensus estimate of $0.74.
Revenues surged 27.9% from last year to $984 million, also easily surpassing analysts’ $871.79 million view.
Commenting on its strong quarter, ADI also noted that Non-GAAP operating margins were 35% of revenue in the latest period.
Looking ahead, Analog Devices forecast adjusted Q2 EPS of $0.74 to $0.86, which straddles Wall Street’s view of $0.76. Q2 revenues are seen ranging from $870 to $950 million, also in-line with analysts’ $875.65 million estimate.
The company also expects non-GAAP gross margins to rise between 66.5% and 67%, with non-GAAP operating expenses contracting 3% to 1%.
Additionally, ADI announced a 7% increase in its quarterly cash dividend to $0.45 from $0.42 per share, or $1.80 per share annually.
The company commented via press release:
“We have started 2017 with strong and broad-based momentum in our business,” said Vincent Roche, President and CEO. “Our strategy to focus on sustainable and differentiated innovation helped drive 28% year-on-year revenue growth, and our laser focus on operational execution drove strong year-on-year margin expansion and cash generation in the first quarter.”
Analog Devices, Inc. shares rose $2.66 (+3.42%) in premarket trading Wednesday. Year-to-date, ADI has gained 7.19%, versus a 4.55% rise in the benchmark S&P 500 index during the same period.
ADI currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #7 of 97 stocks in the Semiconductor & Wireless Chip category.
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