These Analysts Raise Their Analog Equipment Expectations After Upbeat Results – Analog Equipment (NASDAQ:ADI)

Analog Devices, Inc. (NASDAQ:ADI) reported better-than-expected second-quarter financial results on Wednesday.

The company’s revenue fell 34% year-over-year to $2.16 billion, beating analyst consensus of $2.11 billion. Adjusted EPS of $1.40 topped analyst consensus of $1.26, according to Benzinga Pro data.

Adjusted gross margin declined 700 basis points to 66.7% as lower revenues outweighed profits. Adjusted operating margin decreased 1,220 basis points to 39.0%.

Vincent Roche, CEO and Chairman, said: “We believe inventory rationalization across our broad customer base is stabilizing, paving the way for us to return to sequential growth in the third quarter. This, combined with an improvement in new orders, makes us optimistic that they are at the beginning of a cyclical recovery.”

Analog Devices said it expects third-quarter revenue of $2.27 billion, +/- $100 million, compared to the consensus estimate of $2.16 billion. The company forecasts adjusted EPS of $1.50, +/- $0.10 versus the consensus estimate of $1.34.

Analog Devices shares gained 10.9% to close at $240.16 on Wednesday.

These analysts made changes to their price targets for analog devices after the company released its quarterly results.

• B Securities raised the price target for analog devices from $225 to $260. B of A Securities analyst Vivek Arya maintained his Buy rating.
• Key lock increased the price target for analog devices from $230 to $285. Keybanc analyst John Vinh maintained his Overweight rating.
• Needham Meanwhile, analyst Quinn Bolton again said that Analog Devices has its finger on the pulse.

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