The 10-second takeaway
For the quarter ended Aug. 4 (Q3), Analog Devices met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Analog Devices notched revenue of $683.0 million. The 23 analysts polled by S&P Capital IQ wanted to see a top line of $692.5 million on the same basis. GAAP reported sales were 9.9% lower than the prior-year quarter's $757.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.56 for Q3 were 21% lower than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.6%, 160 basis points worse than the prior-year quarter. Operating margin was 32.0%, 480 basis points worse than the prior-year quarter. Net margin was 24.9%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $710.1 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $2.72 billion. The average EPS estimate is $2.16.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 374 members out of 408 rating the stock outperform, and 34 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Analog Devices a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Analog Devices is outperform, with an average price target of $41.59.
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