Chipmaker Analog Devices on Wednesday easily beat Wall Street's targets for its fiscal second quarter and guided higher for the current period. But ADI stock fell amid a broad market sell-off.
The Wilmington, Mass.-based company earned an adjusted $2.40 a share on sales of $2.97 billion in the quarter ended April 30. Analysts polled by FactSet expected Analog Devices to earn $2.11 a share on sales of $2.84 billion. On a year-over-year basis, Analog Devices earnings rose 56% while sales jumped 79%.
For the current quarter, Analog Devices predicted adjusted earnings of $2.42 a share on sales of $3.05 billion. Wall Street had forecast earnings of $2.17 a share on sales of $2.9 billion in the fiscal third quarter. In the same quarter last year, the company earned $1.72 a share on sales of $1.76 billion.
"ADI delivered its fifth consecutive quarter of record revenue, illustrating the unprecedented demand for our technologies and our ability to increase output in a challenging supply backdrop," Chief Executive Vincent Roche said in a news release.
Roche credited the company's strong position in megatrends such as automation, electric vehicles, and advanced connectivity for its outperformance.
ADI Stock Seesaws After Report
In morning trades on the stock market today, ADI stock rose as much as 1.3% to 166.01 before retreating in a broad market sell-off. It ended the regular session down 2.4% to 159.92. ADI stock has been consolidating for the past 26 weeks with a formal buy point of 192.05, according to IBD MarketSmith charts.
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.
ADI stock ranks fourth out of 30 stocks in IBD's Semiconductor Manufacturing industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 93 out of 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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