Analog Devices (ADI) to Report First Quarter Results: What’s in Store?

Analog Devices, Inc. ADI is expected to report its results for the first quarter of fiscal 2022 on February 16.

For the first fiscal quarter, the company forecasts revenue of $2.60 billion (+/- $100 million). Zacks’ consensus estimate for the same is pegged at $2.61 billion, indicating a 67.3% increase from the figure reported a year ago.

Additionally, he expects adjusted earnings per share to be $1.78 (+/- $0.10). The consensus mark for the same is set at $1.79 per share, implying a 24.3% increase over the figure reported the previous year.

The company has exceeded earnings estimates for the past four quarters, averaging 6.1%.

Analog Devices, Inc. Price and EPS Surprise

Analog Devices, Inc. price-eps-surprise | Analog Devices, Inc. Quote

Factors to note

Analog Devices should have benefited from a strong demand environment in the automation, instrumentation and customer sectors during the first fiscal quarter.

Strength in signal processing solutions for hearing aids, wearables and professional audio/video may have boosted the company’s performance in the consumer market in the quarter ahead.

Growing traction in battery management systems technology and automotive audio bus solution likely boosted ADI’s performance in the automotive market during the fiscal first quarter.

The company’s extensive instrumentation business, including automated test equipment, electronic testing, and measuring and scientific instruments, is expected to have contributed to its quarterly performance.

The strengthening of the 5G momentum in North America should have contributed well to the growth in turnover during the quarter under discussion. Additionally, the transceiver platform for the 5G and O-RAN ecosystem may have benefited the communications business during the quarter.

Additionally, the company benefited from the acquisition of Maxim Integrated. Maxim’s power management solutions should have continued to help ADI’s performance in the quarter ahead.

Still, a constrained supply environment due to the ongoing coronavirus pandemic is likely to have remained a major headwind in the quarter under review. Also, the sluggish Chinese wireless market should have been a concern.

In addition, rising selling, general and administrative and research and development expenses likely hurt the company’s profitability.

What our model says

Our proven model does not conclusively predict an earnings beat for Analog Devices this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. But it is not the case here. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.

Analog Devices has an ESP of 0.00% earnings and a Zacks #2 rating, at present.

Actions to Consider

Here are a few stocks you can consider as our model shows they have the right combination of elements to beat on earnings this season.

NetApp NTAP has a +2.09% Earnings ESP and a Zacks Rank of 2 at present. You can see the full list of today’s Zacks #1 Rank stocks here.

NetApp is expected to report its third quarter fiscal 2022 results on Feb. 23. Zacks’ consensus estimate for NTAP’s earnings is pegged at $1.28 per share, suggesting a 16.4% increase from the figure released a year earlier.

Keysight-Technologies KEYS has a +2.17% Earnings ESP and a #2 Zacks rank at present.

Keysight Technologies is expected to report its first quarter fiscal 2022 results on February 17. Zacks consensus estimate for KEYS earnings is set at $1.56 per share, suggesting a 9.1% increase over the prior year figure.

Z-scale ZS has a +2.10% win ESP and a #2 Zacks rank right now.

Zscaler is expected to report second quarter fiscal 2022 results on February 24. Zacks’ consensus estimate for ZS earnings is pegged at 11 cents per share, suggesting a 10% increase over the prior year’s figure.

Stay on top of upcoming earnings announcements with Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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