Shares of Apple (NASDAQ:AAPL) supplier Analog Devices (NASDAQ:ADI) have done well this year despite rumors that Apple might drop its chips from the next iPhone. Last month, Rosenblatt Securities analyst Jun Zhang said in a research note (via Barron's) that the chipmaker could lose its Force Touch socket in Apple's upcoming iPhone due to cost cuts. Though others doubt this and Analog Devices investors are apparently not worried as the stock is currently trading close to its 52-week highs after logging 13% gains so far in 2017. What should investors expect when Analog Devices releases its second-quarter fiscal 2017 results on May 31?

Image of Analog Devices' logo and the words "ahead of what's possible."

Image Source: Analog Devices 

Revenue and earnings are set to rise

Wall Street expects Analog Devices' revenue to rise 41% year-over-year to $1.1 billion, which is significantly higher than the $910 million midpoint of the company's own guidance given in mid-February. But Analog should meet analyst expectations thanks to the Linear Technology acquisition that was completed in March.

The Linear Technology acquisition is expected to contribute between $160 million and $170 million in revenue during the second quarter. But the interesting thing to note is that Analog is on track to achieve strong double-digit organic revenue growth as its factory automation, automotive, and consumer businesses are gaining robust traction.

What's more, the terrific year-over-year jump in Analog Devices' revenue is estimated by analysts to push its earnings to $0.84 per share as compared to $0.64 per share in the prior-year period. But investors will be more concerned with the company's outlook as it will provide concrete signs regarding its Apple relationship.

Gauging the outlook

Analog Devices reportedly gets 12% of its overall revenue from Apple by supplying the Force Touch solution for iPhones. So, a potential loss of content at its biggest customer would definitely hurt its top line. But not everyone is convinced Analog Devices will lose out.

Fool contributor Ashraf Eassa, for instance, says Analog Devices should retain its spot in the next iPhone given that Apple is going all out to pack the next iPhone with cutting-edge features. And analysts expect Cupertino to charge a heavy premium for the next iPhone.

For instance, UBS believes that pricing will start at $870 and could go all the way up to $1,070, thanks to features such as wireless charging and an edge-to-edge screen. This indicates Analog Devices shouldn't lose its spot due to cost concerns as Apple allegedly plans a high price and won't want to exclude a popular feature.

A design win in a higher-priced iPhone that some expect to ship 130 million units in 2017 would be a big deal for Analog Devices. But Apple isn't the only catalyst that Analog Devices investors should be looking out for as the company's automotive and industrial businesses are growing at a fast clip.

Industrial is Analog Devices' biggest end market, with 41% of total revenue, and it is getting better thanks to the growing demand for factory automation solutions. In fact, Analog's factory automation sales jumped 15% during the first quarter, and it is likely that the trend will continue as this market could grow at 6.6% a year until 2024, according to Transparency Market Research.

Meanwhile, Analog Devices is attacking the self-driving car opportunity with its Drive360 autonomous driving product. The company is primarily focusing on radar solutions that are crucial to the operation of driverless cars, so it is not surprising to see its automotive revenue increased 10% year-over-year during the first quarter and now accounts for 14% of the total.

Investors, shouldn't be surprised if Analog Devices' outlook turns out to be stronger-than-expected thanks to a possible Apple boost and secular growth in the automotive and industrial markets.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.