Analog Devices (NASDAQ:ADI) Issues Q2 Earnings Guidance

Analog Devices (NASDAQ:ADI) updated its second quarter earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $1.58-1.78 for the period, compared to the consensus estimate of $1.66. The company issued revenue guidance of $2.40-2.60 billion, compared to the consensus revenue estimate of $2.46 billion. Analog Devices also updated its Q2 2025 guidance to 1.580-1.780 EPS.

Wall Street Analysts Forecast Growth

ADI has been the topic of several recent analyst reports. Barclays decreased their price target on Analog Devices from $250.00 to $210.00 and set an “equal weight” rating on the stock in a research note on Friday, January 17th. Needham & Company LLC restated a “hold” rating on shares of Analog Devices in a research note on Wednesday, November 27th. TD Cowen dropped their target price on shares of Analog Devices from $270.00 to $260.00 and set a “buy” rating for the company in a research report on Wednesday, November 27th. Benchmark began coverage on shares of Analog Devices in a research report on Friday, February 14th. They issued a “buy” rating and a $245.00 price target on the stock. Finally, Wells Fargo & Company initiated coverage on shares of Analog Devices in a research note on Friday, November 22nd. They set an “equal weight” rating and a $220.00 price objective on the stock. Seven investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $248.52.

Analog Devices Trading Up 9.8 %

Shares of NASDAQ:ADI traded up $21.53 during trading on Wednesday, hitting $241.75. 8,185,287 shares of the company’s stock were exchanged, compared to its average volume of 3,588,420. The company has a current ratio of 1.84, a quick ratio of 1.35 and a debt-to-equity ratio of 0.19. The firm has a market cap of $119.93 billion, a P/E ratio of 73.48, a PEG ratio of 2.46 and a beta of 1.04. The firm has a 50-day moving average price of $214.04 and a two-hundred day moving average price of $219.65. Analog Devices has a 1-year low of $182.57 and a 1-year high of $244.14.

Analog Devices (NASDAQ:ADI) last released its earnings results on Wednesday, February 19th. The semiconductor company reported $1.63 EPS for the quarter, topping analysts’ consensus estimates of $1.54 by $0.09. The firm had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.36 billion. Analog Devices had a net margin of 17.35% and a return on equity of 9.01%. The business’s quarterly revenue was down 3.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.73 EPS. Equities analysts predict that Analog Devices will post 7.09 earnings per share for the current year.

Analog Devices Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Tuesday, March 4th will be paid a $0.99 dividend. This is a positive change from Analog Devices’s previous quarterly dividend of $0.92. The ex-dividend date of this dividend is Tuesday, March 4th. This represents a $3.96 annualized dividend and a yield of 1.64%. Analog Devices’s dividend payout ratio is presently 111.85%.

Analog Devices declared that its board has initiated a stock buyback program on Tuesday, February 18th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the semiconductor company to purchase up to 9.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Insider Activity

In other news, CEO Vincent Roche sold 10,000 shares of the business’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $215.49, for a total value of $2,154,900.00. Following the completion of the transaction, the chief executive officer now owns 21,983 shares of the company’s stock, valued at $4,737,116.67. The trade was a 31.27 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.33% of the stock is currently owned by company insiders.

About Analog Devices

Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.