The 10-second takeaway
For the quarter ended Feb. 2 (Q1), Analog Devices missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped. GAAP earnings per share contracted.
Margins contracted across the board.
Analog Devices chalked up revenue of $622.1 million. The 23 analysts polled by S&P Capital IQ foresaw sales of $633.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.44. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. Non-GAAP EPS of $0.44 for Q1 were 4.3% lower than the prior-year quarter's $0.46 per share. GAAP EPS of $0.42 for Q1 were 8.7% lower than the prior-year quarter's $0.46 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 62.7%, 50 basis points worse than the prior-year quarter. Operating margin was 26.9%, 180 basis points worse than the prior-year quarter. Net margin was 21.1%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $665.4 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $2.72 billion. The average EPS estimate is $2.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 368 members out of 402 rating the stock outperform, and 34 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 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 $42.32.
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