Analog Devices (NASDAQ:ADI) Issues Q2 Earnings Guidance

Analog Devices (NASDAQ:ADI) updated its second quarter earnings guidance on Wednesday. The company provided earnings per share guidance of $1.58-1.78 for the period, compared to the consensus earnings per share estimate of $1.66. The company issued revenue guidance of $2.40-2.60 billion, compared to the consensus revenue estimate of $2.46 billion. Analog Devices also updated its Q2 2025 guidance to 1.580-1.780 EPS.

Wall Street Analyst Weigh In

ADI has been the topic of a number of recent analyst reports. TD Cowen decreased their target price on Analog Devices from $270.00 to $260.00 and set a “buy” rating on the stock in a research report on Wednesday, November 27th. Wells Fargo & Company boosted their price target on Analog Devices from $220.00 to $240.00 and gave the stock an “equal weight” rating in a report on Thursday. Barclays reduced their price target on Analog Devices from $250.00 to $210.00 and set an “equal weight” rating on the stock in a report on Friday, January 17th. Benchmark boosted their price target on Analog Devices from $245.00 to $275.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Analog Devices in a report on Thursday. Seven research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $255.19.

Analog Devices Stock Performance

Shares of ADI stock traded down $0.39 on Friday, hitting $243.43. 577,941 shares of the stock were exchanged, compared to its average volume of 3,642,395. The company has a current ratio of 1.93, a quick ratio of 1.35 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $120.77 billion, a PE ratio of 77.46, a P/E/G ratio of 2.76 and a beta of 1.04. Analog Devices has a one year low of $182.57 and a one year high of $247.10. The firm’s 50 day moving average is $215.06 and its two-hundred day moving average is $219.97.

Analog Devices (NASDAQ:ADI) last issued its quarterly earnings data on Wednesday, February 19th. The semiconductor company reported $1.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.54 by $0.09. Analog Devices had a return on equity of 8.91% and a net margin of 16.75%. The business had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.36 billion. During the same quarter in the prior year, the firm posted $1.73 EPS. The firm’s quarterly revenue was down 3.6% on a year-over-year basis. Sell-side analysts expect that Analog Devices will post 7.11 earnings per share for the current fiscal year.

Analog Devices Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Tuesday, March 4th will be given a dividend of $0.99 per share. This represents a $3.96 annualized dividend and a yield of 1.63%. This is a positive change from Analog Devices’s previous quarterly dividend of $0.92. The ex-dividend date is Tuesday, March 4th. Analog Devices’s dividend payout ratio (DPR) is presently 117.20%.

Analog Devices declared that its board has initiated a stock repurchase program on Tuesday, February 18th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 9.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Analog Devices

In other news, CEO Vincent Roche sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $215.49, for a total value of $2,154,900.00. Following the completion of the transaction, the chief executive officer now owns 21,983 shares in the company, valued at $4,737,116.67. This trade represents a 31.27 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.33% of the company’s stock.

Analog Devices Company Profile

Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.