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ADI Likely to Beat Q3 Earnings Estimates: How to Play the Stock

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Key Takeaways

  • ADI projects Q3 revenues near $2.75B, reflecting a 19.2% annual increase.
  • Industrial automation, healthcare, and AI demand are likely to lift results.
  • Lean inventories and stronger bookings are expected to support quarterly growth.

Analog Devices, Inc. (ADI - Free Report) is scheduled to report third-quarter fiscal 2025 results on Aug. 20.

Analog Devices expects revenues of $2.75 billion (+/- $100 million). The Zacks Consensus Estimate is pegged at $2.76 billion, indicating an increase of 19.2% from the year-ago quarter’s figure.

ADI anticipates adjusted earnings per share of $1.92 (+/-10 cents). The consensus mark for earnings is pinned at $1.93 per share, indicating a 22.2% rise from the prior-year quarter’s figure. The estimate has been revised upward by a penny over the past 60 days.

Analog Devices’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.6%.

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 for ADI’s Q3 Results

Analog Devices’ third-quarter performance is likely to have benefited from inventory normalization across both direct and distribution channels. Furthermore, the combination of improved bookings and lean inventory levels, following the end of the semiconductor industry's cyclical downturn, is expected to have supported top-line growth for ADI in the quarter to be reported.

Secular growth trends across industrial automation, healthcare and surgical robotics, automotive sector, AI infrastructure and high-end consumer devices are likely to have driven ADI’s top line in the fiscal third quarter. 

Additionally, Analog Devices’ strong design wins in industrial automation, healthcare, and communications are expected to have supported its third-quarter fiscal 2025 performance, while automotive is likely to have declined sequentially after a very strong second-quarter performance.

Moreover, macroeconomic challenges, including tariff-related uncertainty, geopolitical tensions, and inflationary pressures, are likely to have posed challenges for the company in the to-be-reported quarter.

Earnings Whispers for Analog Devices

Our proven model conclusively predicts an earnings beat for Analog Devices this time. 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, which the exact case here.

Analog Devices has an Earnings ESP of +0.72% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With Favorable Combination

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

Fabrinet (FN - Free Report) has an Earnings ESP of +1.14% and carries a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fabrinet shares have surged 46.5% year to date. Fabrinet is set to report its fourth-quarter fiscal 2025 results on Aug. 18.

Affirm (AFRM - Free Report) currently has an Earnings ESP of +19.25% and a Zacks Rank #3 at present.

Affirm shares have gained 26.5% year to date.  Affirm is slated to report its fourth-quarter fiscal 2025 results on Aug. 28.

Okta (OKTA - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank #3 at present. 

Okta shares have appreciated 12.4% year to date. Okta is slated to report its second-quarter fiscal 2026 results on Aug. 26.


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