DJ Analog Devices Stock Falls Into the Red Despite Solid Earnings Beat and an Upbeat Outlook -- Barrons.com
10:45 AM ET 5/22/25 | Dow Jones
By Mackenzie Tatananni
Shares of Analog Devices fell into the red on Thursday after an initial surge. The semiconductor company posted fiscal second-quarter earnings that topped Wall Street's expectations and shared a rosy forecast for the current quarter.
Adjusted earnings of $1.85 a share beat the $1.70 that analysts had anticipated, according to FactSet. The company reported $2.64 billion in revenue, surpassing Wall Street's $2.51 billion consensus estimate.
Shares were down 4% to $213.14 after rising in premarket trading. The S&P 500 was down 0.2%, while the tech-heavy Nasdaq Composite was up 0.4%.
Analog Devices cited "double-digit year-over-year growth across all end markets." The latest results also represented sequential growth, topping earnings of $1.63 a share and revenue of $2.42 billion in the first quarter.
"Against a backdrop of global trade volatility, our performance reflects the ongoing cyclical recovery, and the strength and resiliency of our business model," CEO and Chair Vincent Roche said in a statement.
Management guided for third-quarter adjusted earnings in the range of $1.82 to $2.02 a share and revenue of $2.75 billion, plus or minus $100 million. Analysts polled by FactSet had forecast earnings of $1.80 a share on revenue of $2.61 billion.
The company's chief financial officer, Richard Puccio, noted that second-quarter bookings accelerated across all regions and end markets in the quarter. The company operates in North America, Europe, Africa, and the Middle East.
"The improving demand signals we saw throughout our fiscal Q2 support our outlook for continued growth in Q3 and reinforce our view that we are in a cyclical upturn," Puccio added.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
> Dow Jones Newswires
May 22, 2025 10:45 ET (14:45 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc. |
