Analog Devices (ADI) Reports Q2: Everything You Need To Know Ahead Of Earnings

Manufacturer of analog chips, Analog Devices (NASDAQ:ADI) will be reporting earnings tomorrow morning. Here’s what to look for.

Analog Devices beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $2.16 billion, down 33.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates but a decline in its operating margin.

Is Analog Devices a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Analog Devices’s revenue to decline 26.1% year on year to $2.27 billion, a further deceleration from the 1.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.51 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Analog Devices has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.

Looking at Analog Devices’s peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Himax delivered year-on-year revenue growth of 2%, beating analysts’ expectations by 2.9%, and Impinj reported revenues up 19.2%, topping estimates by 5.2%. Himax traded down 5.2% following the results while Impinj was up 4.6%.

Read our full analysis of Himax’s results here and Impinj’s results here.

Inflation fears have put pressure on growth stocks, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 7.7% on average over the last month. Analog Devices is down 5.8% during the same time and is heading into earnings with an average analyst price target of $254.6 (compared to the current share price of $226).

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