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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.