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Wilmington, Massachusetts-based Analog Devices, Inc. (ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. Valued at $114.2 billion by market cap, the company's products are used in communications, computer, industrial, instrumentation, military, aerospace, automotive, and high-performance consumer electronics applications. The global semiconductor leader is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Nov. 26.
Ahead of the event, analysts expect ADI to report a profit of $1.63 per share on a diluted basis, down 18.9% from $2.01 per share in the year-ago quarter. The company has consistently beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect ADI to report EPS of $6.34, down 37.2% from $10.09 in fiscal 2023. However, its EPS is expected to rise 18.5% year over year to $7.51 in fiscal 2025.
ADI stock has outperformed the S&P 500’s ($SPX) 41.4% gains over the past 52 weeks, with shares up 43.3% during this period. Similarly, it outperformed the Technology Select Sector SPDR Fund’s (XLK) 42.9% gains over the same time frame.
ADI's strong performance is due to the launch of CodeFusion Studio, an embedded software development environment based on Microsoft's Visual Studio code, offering software and security solutions. This integrated suite simplifies development on multiple processors, enhancing efficiency and security. ADI's partnership with Tata Group in India for electronic manufacturing and collaborations with companies like Honeywell International Inc. (HON), Taiwan Semiconductor Manufacturing Company Limited (TSM), and BMW for innovative technologies are boosting its market presence. Its strategic partnerships highlight ADI's focus on cutting-edge solutions in varied sectors. Additionally, ADI's collaboration with Flagship Pioneering to advance biological insights signals its expansion into the biotech field.
On Aug. 21, ADI shares closed up more than 1% after reporting its Q2 results. Its revenue of $2.31 billion surpassed analyst estimates of $2.27 billion. The company’s adjusted EPS of $1.58 exceeded analyst estimates of $1.51.
Analysts’ consensus opinion on ADI stock is bullish, with a “Strong Buy” rating overall. Out of 27 analysts covering the stock, 19 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and seven give a “Hold.” ADI’s average analyst price target is $258.57, indicating a potential upside of 12.4% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
