Analog Devices Earnings: We Maintain $196 Fair Value Estimate Amid Predictably Ugly Results

Wide-moat Analog Devices reported fiscal first-quarter results and provided investors with an outlook for the April quarter that came in predictably soft and comparable with peers, as many of ADI's customers are correcting their own chip inventory levels. ADI's guidance for the April quarter was modestly worse than our prior expectations but doesn't affect our long-term view of the company, as we anticipate that revenue will fully recover over the next year or two. We maintain our $196 fair value estimate and view shares as fairly valued.