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Stock Analyst Update

Analog Devices Raises the Bar


Analog Devices  (ADI) is one of many chip companies in the right place at the right time.

Not being able to keep up with demand is a good problem to have if you're Analog Devices. With the communication sector on fire, the company's fiscal-second-quarter results indicate that business couldn't be much better. Earnings were $0.32 per share, or 10% better than the First Call consensus. And sales continued to grow at a torrid pace. The company increased revenue by more than 70% over the year-ago quarter. Not only is this rate better than that of most chip companies, but it's better than those of most of Analog Devices' closest competitors. Like most other chip companies these days, Analog Devices can hardly supply all the chips its customers want, as evidenced by the increasing time it takes the firm to complete shipping its orders.

Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.