Analog Devices reported better-than-expected results for the fiscal second quarter, with adjusted earnings per share of $1.40 exceeding projections. Despite a 34% year-over-year drop in revenue to $2.16 billion, the figure still surpassed forecasts. The semiconductor manufacturer’s CEO, Vincent Roche, acknowledged challenges related to macro and inventory issues but believes the company is on track for a return to sequential growth in the third quarter.
Analog Devices also provided a current-quarter forecast that surpassed expectations, anticipating adjusted EPS of $1.50 with revenue expected to reach $2.27 billion. Both figures exceeded initial estimates. Following the news, shares of Analog Devices rose by 8% to $233.94, hitting an all-time high of $234.67 earlier in the trading session. Since the beginning of 2024, the stock has increased by about 18%.
CEO Roche highlighted the stabilization of customer inventories and a rebound in new orders as positive signs of a potential cyclical recovery. He believes that these trends indicate that there could be a turnaround in sales and profits for the company in future quarters. Roche stated that while there are still challenges ahead related to macro and inventory issues, he remains optimistic about the future outlook for Analog Devices and believes that it is well positioned for long-term success.
