Analog Devices Tops Expectations on Demand for Consumer Products
November 24 2015 - 10:10AM
Dow Jones News
Chip maker Analog Devices Inc. easily topped expectations in its
latest quarter, powered by demand for products including
smartphones and tablets.
Shares rose 3.6% in premarket trading, adding to the 2.3% gain
notched this year through Monday's close.
Analog Devices, widely known as ADI, specializes in chips that
convert radio and other analog signals into digital form. Its
products are used in a broad array of electronic equipment,
including factory-automation systems and portable electronic
devices.
The Massachusetts-based company—one of Apple Inc.'s key
suppliers—last year bought fellow chip maker Hittite Microwave
Corp. for $2.45 billion, in a move to expand into areas including
high-frequency antenna chips. Due to costs associated with the
acquisition, among other items, ADI reported a decline in fiscal
fourth-quarter profit to $96.3 million, or 30 cents a share, from
year-earlier earnings of $108.7 million, or 34 cents.
Excluding one-time items, though, per-share profit rose to $1.03
from 69 cents. Revenue grew 13% to $978.7 million. Analysts
projected earnings of 83 cents a share on $910 million in revenue,
according to Thomson Reuters.
Sales were driven by a surge in revenue from ADI's consumer
segment, where revenue more than tripled to $317.4 million and
represented about a third of the top line. That increase offset
declines in other segments: communications revenue dropped 23% to
$159.8 million while sales in both the industrial and automotive
units edged 2% lower.
For the current quarter, ADI said it expects to book 65 cents to
73 cents in adjusted earnings per share, bracketing the 71 cents
analysts have predicted. The company sees $805 million to $855
million in sales, compared with the $835.4 million analysts have
anticipated.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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(END) Dow Jones Newswires
November 24, 2015 09:55 ET (14:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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