Why Analog Devices Shares Are Hitting Multiyear Highs
Analog Devices released its most recently quarterly results before the markets opened on Wednesday and watched its shares hit a 17-year high.
Analog Devices Inc. (NASDAQ: ADI) released its most recently quarterly results before the markets opened on Wednesday and watched its shares hit a 17-year high. The company posted $1.03 in earnings per share (EPS) on $1.15 billion in revenue, compared with consensus estimates from Thomson Reuters of $0.84 in EPS and revenue of $1.1 billion. The fiscal second quarter of last year reportedly had EPS of $0.64 and $778.77 million in revenue.
Linear Technology had a $208.3 million contribution to total revenues for the quarter. This number is expected to grow going forward as this segment was just acquired in March.
In terms of the guidance for the fiscal third quarter, the company expects to see EPS in the range of $1.07 to $1.21 and revenues between $1.37 billion and $1.45 billion. The consensus estimates are $1.04 in EPS and $1.36 billion in revenue for the quarter.
[nativounit]
ADI also announced that the board of directors declared a quarterly cash dividend of $0.45 per outstanding share of common stock, representing an annual dividend per share of $1.80. The dividend will be paid on June 20 to all shareholders of record at the close of business on June 9.
On the books, ADI cash and cash equivalents ended the period at $5.70 billion, up from $1.12 billion in the same period from last year.
Vincent Roche, president and CEO, commented:
The second quarter of 2017 was a period of significant success. Business conditions during the quarter were strong, and our results were above the high end of our revised guidance range led by broad-based strength, particularly in the industrial end market. In addition, we closed the acquisition of Linear Technology Corporation and are on track with our integration activities. This acquisition creates a high-performance analog industry powerhouse, and I am confident that we are well on our way to creating tremendous value for our customers, employees, and shareholders.
Shares of Analog Devices were last seen up 4.4% at $88.57 on Wednesday, with a consensus analyst price target of $91.71 and a 52-week range of $52.17 to $90.49.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
