CORRECTED-Chipmaker Analog Devices Q4 profit beats estimates on demand in communications sector
Overview
Analog Devices Q4 revenue grows 26% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beats analyst expectations, reflecting robust performance
Adjusted operating income for Q4 missed analyst expectations
Outlook
Company forecasts Q1 2026 revenue of $3.1 bln, +/- $100 mln
Analog Devices expects Q1 2026 reported EPS of $1.60, +/- $0.10
Company anticipates Q1 2026 adjusted EPS of $2.29, +/- $0.10
Result Drivers
COMMUNICATIONS AND INDUSTRIAL GROWTH - Revenue growth in Q4 was led by strength in Communications and Industrial sectors
CUSTOMER FOCUS - CEO Vincent Roche attributes strong growth to leveraging technology and domain expertise to solve customer problems
BOOKINGS TRENDS - Healthy bookings trends continued in Q4, with notable strength in Communications market, per CFO Richard Puccio
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $3.08 bln | $3.007 bln (28 Analysts) |
Q4 Adjusted EPS | Beat | $2.26 | $2.22 (27 Analysts) |
Q4 EPS |
| $1.60 |
|
Q4 Adjusted Operating Income | Miss | $1.34 bln | $1.39 bln (26 Analysts) |
Q4 Adjusted Gross Margin |
| 69.8% |
|
Q4 Adjusted Operating Margin |
| 43.50% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Analog Devices Inc is $280.00, about 14.5% above its November 24 closing price of $239.40
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago
Press Release: ID:nPn305nnda
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