Company Reports

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.

Wide-moat Analog Devices reported decent fiscal fourth-quarter results but provided investors with a modestly disappointing outlook for fiscal 2024's first quarter, as it is facing a cyclical downturn across several end markets. We think the company is taking the right steps to weather the storm. We’re confident that it is not losing market share, still has industry-leading analog design expertise, and benefits from high switching costs across its customer base. We maintain our $196 fair value estimate and view the shares as modestly undervalued.

Wide-moat Analog Devices reported decent fiscal third quarter results but provided investors with a disappointing forecast for the October quarter as it suggests a further deceleration of broad-based chip demand and an inventory buildup at many of its customers across all end markets and regions. ADI’s rival, Texas Instruments, made similar comments last month, so we don’t believe ADI is losing share or facing any company-specific headwinds. We’ve reduced our near-term estimates for fiscal 2024 but still maintain our $196 fair value estimate, as we think ADI can weather this storm, and we agree with management’s view that it can achieve a 7%-10% long-term CAGR. In turn, we’re starting to see an attractive margin of safety in this best-of-breed chipmaker for long-term, patient investors willing to ride out a further slowdown in demand.

Analog Devices is one of the world's largest analog chipmakers, with an especially strong position in analog signal processing chips. We think it is well-positioned to profit from more advanced and higher-priced semiconductor content in automobiles, 5G wireless equipment, and industrial applications like medical devices and factory automation equipment in the years ahead.

Wide-moat Analog Devices reported strong fiscal second-quarter results that came in ahead of our expectations but provided weaker-than-expected third-quarter guidance. Its business conditions appear to be reverting to pre-COVID-19 levels, rather than the booming environment of recent quarters amid the global chip shortage. We retain our confidence that Analog can weather any macroeconomic storms that lie ahead. As such, we maintain our $196 fair value estimate. For investors with a long-term perspective, we’re starting to see a rare, attractive margin of safety in shares of this high-quality chipmaker.

Analog Devices reported strong fiscal first-quarter earnings and provided investors with an outlook for the April quarter that was modestly ahead of our prior expectations. Management believes that its auto and industrial businesses are resilient, and while we doubt these good times will last forever if macroeconomic conditions were to deteriorate, we’re encouraged by ADI’s chip content gains within these end markets. We raise our fair value estimate for wide-moat ADI to $196 from $186, as we modestly expand our gross margin assumptions. Shares appear fairly valued to us.

Analog Devices is one of the world's largest analog chipmakers, with an especially strong position in analog signal processing chips. We think it is well-positioned to profit from more advanced and higher-priced semiconductor content in automobiles, 5G wireless equipment, and industrial applications like medical devices and factory automation equipment in the years ahead.

Analog Devices reported strong fiscal fourth-quarter results and provided investors with a decent forecast for the January quarter. Although ADI cited demand uncertainty and weakening macroeconomic conditions, the company still foresees strong year-over-year revenue growth as the global chip shortage (particularly in automotive and industrial semis) carries on. We raise our fair value estimate for wide-moat ADI to $186 from $172, mostly due to the time value of money as we roll our valuation model. Shares in this high-quality chipmaker still appear modestly undervalued to us.

Analog Devices is one of the world's largest analog chipmakers, with an especially strong position in analog signal processing chips. We think it is well-positioned to profit from more advanced and higher-priced semiconductor content in automobiles, 5G wireless equipment, and industrial applications like medical devices and factory automation equipment in the years ahead.

Wide-moat Analog Devices reported solid fiscal third-quarter results and provided investors with a healthy forecast for the October quarter, as the global chip shortage is ongoing, and it continues to see chip demand more than supply. The company did see some cancellations and some softening demand in consumer and communication chips, but demand for industrial and automotive chips remains strong and the company is still striving to catch up to its large order backlog. We maintain our $172 fair value estimate and view shares as fairly valued.

Analog Devices is one of the world's largest analog chipmakers, with an especially strong position in analog signal processing chips. We think it is well-positioned to profit from more advanced and higher-priced semiconductor content in automobiles, 5G wireless equipment, and industrial applications like medical devices and factory automation equipment in the years ahead.

Analog Devices reported strong fiscal second-quarter results and provided investors with an upbeat forecast for the July quarter, particularly on the adjusted gross margin line as the company saw a step up in profitability during the ongoing global chip shortage. We maintain our $172 fair value estimate for the wide-moat firm as we're a bit cautious that these good times may not last forever, but shares appear slightly undervalued to us and we still view it as one of the highest quality chipmakers within our coverage.

Analog Devices' Analyst Day highlighted its strategy to deliver more complete solutions, which management believes will fuel 7%-10% revenue growth over the next five years. We are confident in ADI’s ability to meet its targets over the medium to long term and maintain its position as an analog powerhouse. That said, with inflation becoming prominent within the economy, the higher revenue will likely stem from ADI's ability to pass higher input costs along to its customers and maintain strong pricing. In real terms, we don't view ADI's revenue forecast as a sign of even more chip content per device or even stronger end market demand. Nonetheless, ADI remains a high-quality business that is well poised to prosper from secular tailwinds in the industrial, automotive, and communications end markets.

We’re maintaining our $172 fair value estimate for wide-moat Analog Devices after the firm reported fiscal first-quarter results roughly in line with our expectations. ADI brought in sales near the top end of management’s guidance range and also reported better profitability than management guided for, resulting from more quickly realized synergies from the Maxim Integrated acquisition. Fiscal second-quarter guidance is in line with our expectations as well, and we’re pleased that management expects the quick rate of Maxim synergies to continue. We view the shares as fairly valued.

Analog Devices is one of the world's largest analog chipmakers, with an especially strong position in analog signal processing chips. We think it is well-positioned to profit from more advanced and higher-priced semiconductor content in automobiles, 5G wireless networking equipment, and industrial applications like medical devices and factory automation equipment in the years ahead.

Analog Devices reported strong fiscal fourth-quarter revenue that was near the high end of the firm’s guidance, thanks to strength in the company's industrial and automotive verticals. ADI’s outlook for the January quarter was also ahead of our expectations. We are raising our fair value estimate for wide moat Analog Devices to $172 per share from $152, stemming from the time value of money as we roll our valuation model and a slightly higher long-term earnings growth forecast. We view shares as fairly valued.

We maintain our $152 fair value estimate for wide-moat Analog Devices as the company provided investors with updates on its ongoing capital allocation plans, long-term financial model, and fiscal fourth-quarter financial outlook, now that it has completed the acquisition of Maxim Integrated. The shares were flattish after the update, near $163, and still appear slightly overvalued to us.

Analog Devices is one of the world's largest analog chipmakers, with an especially strong position in analog signal processing chips. We think it is well-positioned to profit from more advanced and higher-priced semiconductor content in automobiles, 5G wireless networking equipment, and industrial applications like medical devices and factory automation equipment in the years ahead.

Wide-moat Analog Devices reported strong fiscal third-quarter results and provided investors with an outlook for October that was in line with our prior expectations and, unsurprisingly, points to business conditions where demand continues to exceed supply in the analog chip industry. Our long-term thesis for Analog Devices remains intact as the firm and its peers should prosper from rising chip content in autos and industrials content, in particular. We will maintain our $141 fair value estimate for Analog Devices and still view shares as overvalued.

Wide-moat Analog Devices reported strong fiscal second-quarter results and provided investors with a healthy forecast for the July quarter, as the semiconductor industry continues to see customer demand well in excess of supply, while chipmakers continue to navigate around supply chain challenges. ADI’s commentary suggests that the firm will face supply/demand challenges through the end of calendar 2021, similar to peers. We modestly raise our fair value estimate to $141 from $137 but still view shares as slightly overvalued.