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Analog Devices (ADI) to Report Q1 Earnings: What's in Store?
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Analog Devices, Inc. (ADI - Free Report) is slated to report first-quarter fiscal 2021 results on Feb 17, before the opening bell. In the last reported quarter, it delivered an earnings surprise of 9.1%.
The stock outperformed earnings estimates in the last four quarters, with the average being 4.3%.
Trend in Estimate Revision
For the fiscal first quarter, the Zacks Consensus Estimate for earnings has remained stable at $1.32 per share over the past 30 days. This indicates growth of 28.2% from the year-ago reported figure.
The consensus mark for revenues is pegged at $1.51 billion, implying growth of 15.6% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
Factors to Note
Analog Devices’ communications market is anticipated to have performed well in the quarter to be reported, driven by strength of the wireless segment. The accelerated build out of TD-LTE in China, continuing 5G network densification activities in the United States and deployments in Europe are expected to have benefited the communications segment.
Nevertheless, strength in the company’s industrial segment and increased focus on innovation and operational execution are expected to reflect on the upcoming results. Also, the automotive electronics market is likely to have gained from consumer demand for added technology and features in new vehicles, along with the transition to hybrid and electric vehicles.
During the quarter, it unveiled a new wireless battery management system, thereby expanding reach in the auto space. The new system provides automotive manufacturers increased flexibility to scale their electric vehicle fleets into volume production across a wide range of vehicle classes.
The Zacks Consensus Estimate for communications revenues is pegged at $279 million, indicating growth of 16.3% year over year. The consensus estimate for revenues from the automotive market is pegged at $239 million, indicating an increase of 16.6% year over year. The same for revenues from the industrial market is pegged at $827 million, indicating growth of 20.7% year over year.
However, the consensus mark for revenues from the consumer market is pegged at $155 million, indicating a decline of 10.4% year over year.
However, softness in the consumer market might have been a major concern.
What Our Model Says
Our proven model does not predict an earnings beat for Analog Devices this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the not case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Analog Devices has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
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Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Analog Devices (ADI) to Report Q1 Earnings: What's in Store?
Analog Devices, Inc. (ADI - Free Report) is slated to report first-quarter fiscal 2021 results on Feb 17, before the opening bell. In the last reported quarter, it delivered an earnings surprise of 9.1%.
The stock outperformed earnings estimates in the last four quarters, with the average being 4.3%.
Trend in Estimate Revision
For the fiscal first quarter, the Zacks Consensus Estimate for earnings has remained stable at $1.32 per share over the past 30 days. This indicates growth of 28.2% from the year-ago reported figure.
The consensus mark for revenues is pegged at $1.51 billion, implying growth of 15.6% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
Factors to Note
Analog Devices’ communications market is anticipated to have performed well in the quarter to be reported, driven by strength of the wireless segment. The accelerated build out of TD-LTE in China, continuing 5G network densification activities in the United States and deployments in Europe are expected to have benefited the communications segment.
Nevertheless, strength in the company’s industrial segment and increased focus on innovation and operational execution are expected to reflect on the upcoming results. Also, the automotive electronics market is likely to have gained from consumer demand for added technology and features in new vehicles, along with the transition to hybrid and electric vehicles.
During the quarter, it unveiled a new wireless battery management system, thereby expanding reach in the auto space. The new system provides automotive manufacturers increased flexibility to scale their electric vehicle fleets into volume production across a wide range of vehicle classes.
The Zacks Consensus Estimate for communications revenues is pegged at $279 million, indicating growth of 16.3% year over year. The consensus estimate for revenues from the automotive market is pegged at $239 million, indicating an increase of 16.6% year over year. The same for revenues from the industrial market is pegged at $827 million, indicating growth of 20.7% year over year.
However, the consensus mark for revenues from the consumer market is pegged at $155 million, indicating a decline of 10.4% year over year.
However, softness in the consumer market might have been a major concern.
What Our Model Says
Our proven model does not predict an earnings beat for Analog Devices this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the not case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Analog Devices has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Rocket Companies, Inc. (RKT - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #2.
Lattice Semiconductor Corporation (LSCC - Free Report) has an Earnings ESP of +2.94% and holds a Zacks Rank of 3.
Analog Devices, Inc. Price and EPS Surprise
Analog Devices, Inc. price-eps-surprise | Analog Devices, Inc. Quote
Looking for Stocks with Skyrocketing Upside?
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Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>