Analog Devices Guides for Potential 2Q Loss After 1Q Declines
By Dean Seal
Analog Devices is warning that it could record a loss in the fiscal second quarter after earnings and revenue fell in the first as customers continue to pull back on their semiconductor inventories.
The chipmaker posted a profit of $462.7 million, or 93 cents a share, in the quarter ended Feb. 3, down from $961.5 million, or $1.88 a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were $1.73 a share. Analysts surveyed by FactSet had been expecting $1.71 a share.
Revenue fell to $2.51 billion from $3.25 billion, but came in just above analyst estimates for $2.5 billion, according to FactSet.
The Wilmington, Mass.-based company is guiding for revenue to decline to between $2 billion and $2.2 billion in its fiscal second quarter, which is under analysts' current forecasts for $2.36 billion, according to FactSet.
The low end of the outlook includes a potential loss of 10 cents a share, on both an adjusted and unadjusted basis, while the upper end of the forecast calls for earnings of 46 cents a share and adjusted earnings of $1.26 a share. Analysts polled by FactSet had been expecting adjusted earnings of $1.56 a share.
"Consistent with our prior view, we expect customer inventory rationalization to largely subside in our second quarter, and thus enter the second half in a more favorable business backdrop," Chief Executive Vincent Roche said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 21, 2024 07:37 ET (12:37 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
3 Stocks to Buy and 3 Stocks to Sell After Earnings
-
Markets Brief: Is It Really a Surprising Quarter for Earnings?
-
After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?
-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
Palantir Earnings: AI Platform Drives Strong Start to 2024
-
What I Hope My 14-Year-Old Learned at Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?
-
The 10 Best Dividend Stocks
-
3 Stocks With High Dividend Yields That Warren Buffett Likes
-
How to Invest Like Warren Buffett
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting