Chipmaker Analog Devices on Tuesday handily topped Wall Street's targets for its fiscal fourth quarter and guided higher for the current period. ADI stock rose on the news.
The Wilmington, Mass.-based company earned an adjusted $2.73 a share on sales of $3.25 billion in the quarter ended Oct. 29. Analysts polled by FactSet had expected earnings of $2.58 a share on sales of $3.15 billion. On a year-over-year basis, Analog Devices earnings surged 58% while sales climbed 39%.
For the current quarter, Analog Devices forecast adjusted earnings of $2.60 a share on sales of $3.15 billion. Analysts were modeling fiscal first-quarter earnings of $2.42 a share on sales of $3.04 billion. The company's outlook would translate to year-over-year growth of 34% in earnings and 17% in sales.
"ADI delivered its seventh consecutive quarter of record revenue, bringing 2022 to a strong close," Chief Executive Vincent Roche said in a news release. "While the economic backdrop continues to cause demand uncertainty, we are well-positioned in the near term with stabilizing orders, a strong backlog, and continued design win momentum."
ADI Stock Rises After Report
On the stock market today, ADI stock advanced 5.8% to close at 168.43.
Analog Devices makes analog and mixed signal, power management, radio frequency and sensor semiconductors. Its chips are used in industrial, communications, automotive and consumer markets.
Chips for industrial applications accounted for 51% of company sales in fiscal Q4. Automotive was the second largest market, bringing in 21% of sales in the period.
ADI stock ranks ninth out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has a decent IBD Composite Rating of 86 out of 99.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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