Chipmaker Analog Devices ( ADI ) received at least six price-target increases to its stock after delivering a beat-and-raise quarterly report on Tuesday.
[ibd-display-video id=2882634 width=50 float=left autostart=true]Analog Devices earned an adjusted $1.45 a share, up 38% year over year, on sales of $1.54 billion, up 54%, in its fiscal fourth quarter ended Oct. 28. Analysts expected $1.37 and $1.5 billion.
For the current quarter, Analog Devices expects to earn an adjusted $1.28 a share on sales of $1.49 billion, based on the midpoint of its guidance. Wall Street was modeling earnings of $1.17 a share on sales of $1.46 billion.
Analog Devices scored price-target hikes from B. Riley FBR, CFRA, Jefferies, KeyBanc, Morgan Stanley and Stifel, all of which have buy ratings on the stock.
The most bullish of the bunch was B. Riley FBR analyst Craig Ellis who upped his price target to 113 from 110.
Analog Devices shares fell 1.7% to close at 88.65 on the stock market today .
IBD'S TAKE: Analog Devices stock has an IBD Composite Rating of 97 out of 99, but it ranks No. 2 in IBD's Electronics-Semiconductor Manufacturing industry group. To see which company leads the group, visit the IBD Stock Checkup .
"Communications base station strength led (the fourth quarter's) positive sales surprise followed by Industrial," Ellis said. The company's fiscal first-quarter guidance could be conservative, he said.
Longer term, Analog Devices is poised to benefit from strong demand for industrial, automotive and wireless infrastructure chips, he said.
Investors likely are disappointed by the magnitude of the quarterly beat by Analog Devices, Morgan Stanley analyst Craig Hettenbach said in a report. He noted that Microchip Technology ( MCHP ) and Texas Instruments ( TXN ) also traded down despite solid earnings reports recently.
"Clearly, the bar is quite high and the magnitude of beats is shrinking as growth shifts from above seasonal to seasonal," Hettenbach said. He reiterated his overweight rating on Analog Devices stock and upped his price target to 103 from 98.
Analog Devices Posts Beat-And-Raise Quarterly Results