Analog Devices (NASDAQ:ADI) Updates Q2 Earnings Guidance

Analog Devices (NASDAQ:ADI) issued an update on its second quarter earnings guidance on Wednesday morning. 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.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Needham & Company LLC restated a “hold” rating on shares of Analog Devices in a research note on Thursday. 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 research note on Thursday. Truist Financial boosted their price target on Analog Devices from $230.00 to $248.00 and gave the stock a “hold” rating in a research note on Thursday. Barclays decreased their price target on Analog Devices from $250.00 to $210.00 and set an “equal weight” rating for the company in a research note on Friday, January 17th. Finally, UBS Group boosted their price target on Analog Devices from $275.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday. Seven investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. Based on data from MarketBeat, Analog Devices has an average rating of “Moderate Buy” and an average price target of $255.19.

Analog Devices Trading Down 0.2 %

Shares of ADI traded down $0.39 during mid-day trading on Friday, reaching $243.43. 577,941 shares of the company’s stock traded hands, compared to its average volume of 3,642,395. The stock has a market cap of $120.77 billion, a P/E ratio of 77.46, a P/E/G ratio of 2.76 and a beta of 1.04. The stock’s 50-day moving average is $215.06 and its two-hundred day moving average is $219.97. Analog Devices has a 12 month low of $182.57 and a 12 month high of $247.10. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.93 and a quick ratio of 1.35.

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

Analog Devices Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Tuesday, March 4th will be issued a $0.99 dividend. This represents a $3.96 annualized dividend and a yield of 1.63%. The ex-dividend date is Tuesday, March 4th. This is an increase from Analog Devices’s previous quarterly dividend of $0.92. Analog Devices’s dividend payout ratio is 117.20%.

Analog Devices declared that its Board of Directors has initiated a share repurchase plan on Tuesday, February 18th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor company to buy up to 9.2% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Analog Devices news, CEO Vincent Roche sold 10,000 shares of the firm’s stock in a transaction 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 transaction, the chief executive officer now owns 21,983 shares in the company, valued at approximately $4,737,116.67. This trade represents a 31.27 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.33% of the company’s stock.

About Analog Devices

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.