The 10-second takeaway
For the quarter ended Nov. 3 (Q4), Analog Devices met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped.
Gross margins dropped, operating margins contracted, net margins grew.
Analog Devices chalked up revenue of $695.0 million. The 23 analysts polled by S&P Capital IQ expected revenue of $696.5 million on the same basis. GAAP reported sales were 3.0% lower than the prior-year quarter's $716.1 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 $0.58. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.58 for Q4 were 3.3% lower than the prior-year quarter's $0.60 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 63.8%, 50 basis points worse than the prior-year quarter. Operating margin was 31.0%, 220 basis points worse than the prior-year quarter. Net margin was 25.8%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $682.0 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $2.88 billion. The average EPS estimate is $2.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 370 members out of 404 rating the stock outperform, and 34 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give Analog Devices a green thumbs-up, and 10 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 $42.40.
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