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Tuesday, January 19, 2021

Analog Devices’ Q3 net income remains unchanged from last year.

  • Analog Devices’ third-quarter net income remains unchanged from last year.
  • The semiconductor company sees a 2% annualised decline in revenue in Q3.
  • The U.S. firm forecasts £1.01 of adjusted EPS on £1.10 billion of revenue in Q4.

Analog Devices Inc. (NASDAQ: ADI) published its quarterly financial results on Wednesday before the bell that topped analysts’ estimates for earnings and revenue in the fiscal third quarter. The company also gave its financial guidance for the fourth quarter that was in line with what the analysts are expecting.

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Analog Devices said on Wednesday that its net income came in at £276.87 million in the third quarter that translates to 74.04 pence per share. In the comparable quarter of 2019, its net income was marginally lower at £276.64 million.

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Analog Devices sees a 2% annualised decline in revenue

Adjusted for one-time items, the company earned £1.04 per share in the recent quarter versus the year-ago figure of 96 pence per share. According to FactSet, experts had anticipated the company to print a lower 99 pence of adjusted earnings per share in Q3.

In terms of revenue, the American multinational saw a 2% annualised decline to £1.11 billion in the fiscal third quarter. The revenue, however, was stronger than the FactSet consensus of £1.10 billion. Analog Devices announced last month that it will acquire smaller rival Maxim Integrated for £16.6 billion.

Shares of the company were reported less than 1% up at £90.52 in premarket trading on Wednesday. After briefly touching an intraday high of £90.89 per share, the stock almost lost the entire gain before the market close. When COVID-19 disrupted operations in March, Analog Devices had tumbled to a year to date low of £62.77 per share. Here’s what you need to know about why prices rise and fall in the stock market.

Analog Devices’ guidance for the fiscal fourth quarter

For the fourth quarter, Analog Devices is now calling for £1.01 of adjusted earnings per share with a margin of 7.63 pence in either direction. In terms of revenue, it now forecasts £1.10 billion for Q4 with a margin of £53.43 million in either direction.

Analysts, on the other hand, are predicting the Norwood-based company to see only slightly lower £1.08 billion of revenue in the fourth quarter and 95 pence of adjusted earnings per share. Analog’s peer in the American semiconductor industry, Intel Corp recently warned that its next-generation processor chips are likely to be delayed until 2022.

At the time of writing, the American multinational semiconductor company has a market cap of £33.27 billion and a price to earnings ratio of 39.62.

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