Analog Devices beats Q1 revenue estimates, driven by strength in Industrial and Communications sectors, dividend up 11%

Overview

• Semiconductor leader's fiscal Q1 revenue rose, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company raised quarterly dividend 11% and returned $1 bln to shareholders

Outlook

• Analog Devices forecasts Q2 revenue of $3.5 bln, +/- $100 mln

• Company expects Q2 reported EPS of $2.19, +/- $0.15

• Analog Devices projects Q2 adjusted EPS of $2.88, +/- $0.15

Result Drivers

• INDUSTRIAL AND COMMUNICATIONS GROWTH - Revenue growth was driven by strong performance in Industrial and Communications sectors

• DATA CENTER ORDERS - Record orders in the Data Center segment contributed to bookings growth

• INNOVATION AND EXECUTION - CEO attributed success to relentless innovation and strong execution against growth tailwinds

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "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 $315.00, about 6.7% below its February 17 closing price of $337.51

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nPn3DJvZ5a

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