Analog Devices (ADI) Q1 Earnings Report in the Spotlight

Analog Devices Inc. (NASDAQ:ADI) history dates back to 1965 when two MIT graduates Ray Stata and Matthew Lorber founded the company in their shared apartment. Today, it is a leading manufacturer of precision performance electronic equipment such as high-performance analog and integrated circuits. Its wide-product portfolio also includes innovative products like data converters and amplifiers.

The Norwood, Massachusetts-based semiconductor company on Wednesday reported better-than-expected financial results for the first quarter. ADI earned $388.5 million, or $1.04 per share for the three months ended Jan. 30, translating to a surge of nearly two-folds from 55 cents per share in the comparable period of 2020. On an adjusted basis, profit increased to $1.44 per share, up from $1.03 per share in the year-ago quarter.

Revenue jumped 20 percent on a year-over-year basis to $1.56 billion. Analysts on average were expecting ADI to report adjusted earnings of $1.33 per share on revenue of $1.51 billion.

Speaking on the results, CEO Vincent Roche said in a statement, “ADI delivered strong first quarter results at the high end of our outlook, reflecting the diversity of our business and our alignment to the most important secular growth trends.”

Looking forward, ADI expects to report an adjusted profit in the range of $1.44 per share, plus or minus 8 cents, and revenue of $1.60 billion, plus or minus $50 million, for the second quarter. Effective March 9, the company also increased its quarterly dividend from 62 cents per share to 69 cents per share.

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ADI shares marginally moved down on Thursday morning following Q1 results. If we look at the recent performance of the stock, ADI share price has increased about 30 percent over the past year, while it is up nearly 6 percent on a year-to-date basis.