Analog Devices first-quarter profit beats estimates
Investing.com | Author Scott Kanowsky
Published Feb 21, 2024 07:05AM ET
Updated Feb 21, 2024 07:35AM ET
Investing.com -- Analog Devices (NASDAQ:ADI) has reported fiscal first-quarter adjusted earnings per share of $1.73, just topping Bloomberg consensus forecasts despite a "difficult macroeconomic environment."
The Massachusetts-based semiconductor maker also said it expects to post current-quarter revenue of $2.1 billion, plus or minus $100 million, adding the business is "well-positioned" to take advantage of a subsiding customer inventory glut.
"The growing criticality of our technology to our customers’ success, and our ‘customer first’ approach to innovation, gives me unwavering confidence in our ability to drive shareholder value for many years to come,” said Chief Executive Vincent Roche in a statement.
Revenue in the three months ended on Feb. 3 dropped by 23% to $2.5B, roughly in line with expectations.
Hit by both high inflation and elevated interest rates, customers have recently reined in expenditures on new chip orders, fueling an backlog of supplies following a pandemic-era boom in demand. But Analog has suggested that the inventory squeeze is starting to show signs of normalizing, with Roche in particular saying in November that the firm expects to "get this overhang behind us" during the first half of its fiscal year.
Shares in the company were slightly lower in premarket U.S. trading on Wednesday.
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