Analog Devices Inc. (ADI), a prominent semiconductor firm, announced its fourth-quarter earnings and revenues, which, despite being weak, surpassed market expectations. On Tuesday, the company released its forecast for the first quarter.
During pre-market trading on the Nasdaq, ADI shares rose approximately 5.6%, reaching $236.01.
For the first quarter of fiscal year 2025, ADI anticipates earnings per share (EPS) to be approximately $0.80, with a margin of plus or minus $0.10. Adjusted EPS is projected at $1.53, again with a margin of plus or minus $0.10.
The company estimates that revenue for the quarter will be around $2.35 billion, with a variance of $100 million. Analysts, as surveyed by Thomson Reuters, predict earnings of $1.57 per share and revenues of $2.34 billion, typically excluding extraordinary items.
The midpoint of ADI's revenue forecast suggests a reported operating margin of about 22%, with a variation of plus or minus 130 basis points, and an adjusted operating margin of around 40%, with a variation of plus or minus 100 basis points.
Additionally, ADI's Board of Directors has declared a quarterly cash dividend of $0.92 per share, payable on December 20 to shareholders recorded by the close of business on December 9.
In the fourth quarter, Analog Devices reported earnings of $478.07 million, or $0.96 per share, compared to $498.43 million, or $1.00 per share, in the previous year. Adjusted earnings for the period stood at $1.67 per share, down from $2.01 per share last year, though they were slightly above analysts' expectations of $1.64 per share.
Revenue for the quarter experienced a decline of 10.1%, totaling $2.443 billion, down from $2.716 billion the previous year. Analysts had forecasted revenues of approximately $2.41 billion.
