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Analog Devices(ADI-Q)

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Analog Devices (ADI) Reports Earnings Tomorrow. What To Expect

StockStory - Tue Feb 20, 1:01AM CST

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Manufacturer of analog chips, Analog Devices (NASDAQ:ADI) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Last quarter Analog Devices reported revenues of $2.72 billion, down 16.4% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

Is Analog Devices buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Analog Devices's revenue to decline 23.1% year on year to $2.5 billion, a deceleration on the 21.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.71 per share.

Analog Devices Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.1%.

Looking at Analog Devices's peers in the analog semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Skyworks Solutions's revenues decreased 9.6% year on year, missing analyst estimates by 0.2% and ON Semiconductor reported revenue decline of 4.1% year on year, exceeding estimates by 0.4%. Skyworks Solutions traded up 5.5% on the results, and ON Semiconductor was up 3.8%.

Read our full analysis of Skyworks Solutions's results here and ON Semiconductor's results here.

Investors in the analog semiconductors segment have had steady hands going into the earnings, with the stocks flat over the last month. Analog Devices is down 4.8% during the same time, and is heading into the earnings with analyst price target of $207, compared to share price of $187.9.

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