Back to top

Image: Bigstock

Analog Devices (ADI) Q4 Earnings & Revenues Beat Estimate

Read MoreHide Full Article

Analog Devices Inc. (ADI - Free Report) is a leading supplier of analog and DSP integrated circuits.  ADI is solidly positioned in growth markets like industrial, auto and communication. Also its products continue to see very strong deployment in the emerging automotive market. The company has a well-diversified business and an end-market focus that guarantee relatively steady revenues throughout the year.

Analog Devices will acquire Linear Technology in a cash and stock deal worth $14.8 billion. The acquisition is expected to be completed in the first half of 2017.  It will make Analog Devices an industry leader across a huge range of products, customer breadth and scale. The deal will help it to grow significantly in industrial, automotive, and communications infrastructure markets.

The transaction is anticipated to be immediately accretive to the company’s bottom line results. In addition, the company expects annualized cost synergies of $150 million within the first 18 months following the completion of the transaction.

While its investments are aimed at strengthening the product line and countering increasing competition, the policy of returning cash through dividends and share buybacks is likely to ensure investor loyalty.

Due to this, investors are eagerly awaiting Analog Devices’ earnings report in order to set the record straight and to give some guidance on where this company is heading and are these factors effectively contributing.

Over the past month, the stock has witnessed no estimate revisions for the to-be-reported quarter.

ANALOG DEVICES Price and EPS Surprise

Currently, ADI has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:ADI reported pro-forma earnings of $1.05 which exceeded The Zacks Consensus Estimate of 90 cents.

Revenue:Analog Devices beats on revenues. It posted revenues of $1003.6 million, compared to our consensus estimate of $943 million.

Key Stats:The company’s top-line performance was positively impacted by stable industrial, automotive, consumer and communications infrastructure markets.

Check back later for our full write up on this AME earnings report later!

The Best Place to Start Your Stock Search

Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Analog Devices, Inc. (ADI) - free report >>

Published in