Analog Devices stock witnessed a decline on Wednesday as the semiconductor manufacturer provided a less-than-ideal outlook for its fiscal second quarter.

Financial Disappointment

In the upcoming fiscal second quarter, Analog Devices anticipates earnings of $1.26 per share, with a variance of plus or minus 10 cents. This projection fell short of analysts’ expectations of $1.56 per share. Additionally, revenue expectations for the quarter stand at $2.1 billion, with a fluctuation of plus or minus $100 million, missing the consensus call of $2.36 billion.

The company’s first-quarter performance, ending on Feb. 3, saw earnings of $1.73 per share on revenue amounting to $2.51 billion. Despite surpassing the analyst’s projected earnings of $1.71 per share and revenue of $2.5 billion, Analog Devices still faced challenges.

Comparative Analysis

In the corresponding period in the previous year, Analog Devices reported significantly higher earnings of $2.75 per share on revenue reaching $3.25 billion.

CEO Insights

Chief Executive Vincent Roche expressed his thoughts on the latest financial results by stating, “ADI delivered first quarter revenue and profitability above the midpoint of our outlook, despite the continued difficult macroeconomic environment.”

Market Response

Following these updates, shares of Analog Devices demonstrated a decline of 1.8% in premarket trading on Wednesday, valuing at $186.02 per share. Over the past 12 months leading up to this session, the stock had shown a modest gain of 3.1%.

Leave a Reply

1  +  8  =