Back to top

Image: Bigstock

Analog Devices (ADI) to Post Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Analog Devices, Inc. (ADI - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Nov 22.

For the fiscal fourth quarter, ADI expects revenues of $3.15 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $3.16 billion, indicating an improvement of 35.2% from the year-ago fiscal quarter’s reported figure.

Analog Devices anticipates adjusted earnings per share of $2.57 (+/- $0.10). The consensus mark for the same is pegged at $2.58, indicating a 49.1% rise from the previous-year fiscal quarter’s reported figure.

Earnings of ADI surpassed estimates in all the trailing four quarters, the average being 6.92%.

Analog Devices, Inc. Price and EPS Surprise

Analog Devices, Inc. Price and EPS Surprise

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

Factors to Consider

Analog Devices’ performance in the fiscal fourth quarter is likely to have benefited from solid demand for high-performance analog and mixed-signal solutions.

Strength across consumer, industrial, communications and automotive end markets is expected to have driven ADI’s top line in the to-be-reported quarter.

The solid momentum of Analog Devices’ precision signal chain, RF portfolios, power franchises, sensing technologies, and wired and wireless connectivity among factory automation applications is expected to have contributed well to its industrial revenues in the quarter under review.

The growing traction across BMS and A2B solutions is likely to have driven Analog Devices’ performance in the automotive market in the fiscal fourth quarter.

The rising uptake of the Battery Management System (BMS) solution in the electric vehicle space is likely to have been a tailwind.

Strength in home entertainment, hearables and wearables is expected to have aided ADI’s performance in the consumer market in the to-be-reported quarter.

Additionally, Analog Devices is likely to have continued gaining on the positive contributions from its Maxim acquisition.

The growing deployment of 5G and solid momentum across the HEV platform are expected to have aided ADI’s performance in the fiscal fourth quarter.

However, the weakening momentum across major applications and a leveraged balance sheet are anticipated to have been concerning in the quarter under review. Uncertainties and supply challenges related to the ongoing pandemic are likely to have affected the performance in the fiscal fourth quarter.

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 #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Analog Devices currently has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Dollar General (DG - Free Report) has an Earnings ESP of +1.58% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar General is scheduled to release third-quarter fiscal 2022 results on Dec 1. The Zacks Consensus Estimate for DG’s earnings is pegged at $2.55 per share, suggesting a 22.6% increase from the prior-year fiscal quarter’s reported figure.

Adobe (ADBE - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

Adobe is scheduled to release fourth-quarter fiscal 2022 results on Dec 15. The Zacks Consensus Estimate for ADBE’s earnings is pegged at $3.50 per share, suggesting a 9.4% rise from the prior-year fiscal quarter’s reported figure.

Dollar Tree (DLTR - Free Report) has an Earnings ESP of +6.31% and is presently Zacks #3 Ranked.

Dollar Tree is set to report third-quarter 2022 results on Nov 22. The Zacks Consensus Estimate for DLTR’s earnings is pegged at $1.16 per share, suggesting 20.8% growth from the prior-year period’s reported figure.

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

Published in