The 10-second takeaway
For the quarter ended May 4 (Q2), Analog Devices met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped. GAAP earnings per share shrank.
Gross margins shrank, operating margins dropped, net margins expanded.
Analog Devices notched revenue of $659.3 million. The 25 analysts polled by S&P Capital IQ hoped for revenue of $660.4 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 $0.50. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. Non-GAAP EPS of $0.50 for Q2 were 5.7% lower than the prior-year quarter's $0.53 per share. GAAP EPS of $0.52 for Q2 were 1.9% lower than the prior-year quarter's $0.53 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 64.0%, 120 basis points worse than the prior-year quarter. Operating margin was 29.0%, 250 basis points worse than the prior-year quarter. Net margin was 24.9%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $688.2 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $2.69 billion. The average EPS estimate is $2.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 360 members out of 397 rating the stock outperform, and 37 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Analog Devices a green thumbs-up, and 12 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 $48.00.
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