Analog Devices Inc. (ADI) said its earnings rose 6.4% in the latest quarter as stronger sales in its communications and automotive markets offset declines in its industrial and communications markets.

Thee Norwood, Mass., company's shares rose 1.3% to $65.70 in recent premarket trading as per-share earnings, excluding certain items, and revenue beat expectations.

Analog counts Apple Inc., whose smartphone sales have slowed lately, as one of its biggest customers.

Last month Analog agreed to acquire fellow chip maker Linear Technology Corp. in a cash-and-stock deal valued at $14.8 billion. Both companies specialize in analog chips that are used in smartphones for purposes such as helping to manage radio signals. By adding Linear, Analog will add product categories such as power-management chips for handsets.

For the period ended July 30, Analog Devices reported a profit of $230.4 million, or 74 cents a share, up from $216.5 million, or 68 cents a share, a year earlier. Excluding acquisition- and restructuring-related charges and other items, per-share earnings rose to 82 cents from 77 cents. Revenue increased 0.7% to $869.6 million.

Analog had expected adjusted per-share earnings of 71 cents to 72 cents on revenue of $865 million.

Gross margin fell to 65.8% from 65.9%.

For the current quarter, the company forecast adjusted per-share earnings of 84 cents to 94 cents and revenue of $910 million to $970 million. Analysts polled by Thomson Reuters expected per-share profit of 89 cents and revenue of $935 million.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

August 17, 2016 09:45 ET (13:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Apple Charts.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Apple Charts.