Analog Devices reports Q2 adjusted EPS of $1.40, consensus $1.26

Reports second-quarter revenue of $2.16 billion, consensus $2.11 billion. “ADI delivered second-quarter revenues above half of our forecast, despite continued macro and inventory headwinds. Moreover, the strength and resilience of our business model, combined with disciplined cost control, enabled us to achieve profitability and earnings per share above the high end of our forecasts,” said Vincent Roche, CEO and Chairman. “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 improved new orders, makes us optimistic that we are at the beginning of a cyclical recovery.” Roche continued: “The continued proliferation of the smart edge means that ADI has multiple parallel secular growth vectors. The artificial intelligence in which we are increasing our investment is expected to accelerate these trends as it increasingly extends from centralized applications in data centers to myriad applications at the physical edge. As a leader in real-world data creation, processing and connectivity, our solutions are becoming increasingly important to customers in the AI-driven era. As such, my confidence in ADI’s ability to generate long-term value for all stakeholders remains unwavering.”