Analog Devices Results Boosted by Higher Demand for Automotive Chips

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Key Takeaways

• Analog Devices hit profit and income estimates arsenic request for chips picked up successful its fiscal 4th quarter.
• The institution sewage a boost from income of semiconductors utilized successful nan automotive sector.
• CFO Richard Puccio said Analog Devices continues to look "macroeconomic uncertainty."

Shares of Analog Devices (ADI) precocious Tuesday arsenic nan semiconductor shaper posted better-than-anticipated results connected a pickup successful request for automotive chips.

The institution reported fiscal fourth-quarter adjusted earnings per stock (EPS) of $1.67, supra nan $1.64 expected by analysts surveyed by Visible Alpha. Revenue slid 10% year-over-year to $2.44 billion, but that was besides much than estimates.

Automotive 'Orders Picked Up Steadily' successful Q4, CFO Says

Chief Financial Officer (CFO) Richard Puccio explained that pursuing a little driblet successful wide bookings successful nan 3rd quarter, "orders picked up steadily passim nan 4th quarter, peculiarly successful nan Automotive extremity market." 

Chief Executive Officer (CEO) Vincent Roche said that "unprecedented customer inventory headwinds drove a historical gross diminution during fiscal 2024," but Puccio added that while "macro uncertainty continues to limit nan gait of our recovery," nan institution remains "cautiously optimistic for a beardown maturation twelvemonth successful fiscal 2025." 

Analog Devices sees first-quarter 2025 adjusted EPS of $1.53, positive aliases minus $0.10, somewhat beneath forecasts. It predicts gross of $2.35 billion, positive aliases minus $100 million, successful statement pinch expectations. 

Analog Devices shares, which roseate 3% Tuesday morning, person added astir 16% of their worth this year.

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