Analog Devices, Inc.
) is set to report third quarter 2013 results on May 21. Last
quarter, its results were in line with our expectations. Let's
see how things are shaping up for this announcement.
Growth Factors This Past Quarter
Analog Devices' second-quarter earnings were in line with the
Zacks Consensus Estimate of 44 cents. Revenues were down 10.0%
sequentially and at the lower end of the management guidance due
to weak sales across a wide range of communications
infrastructure applications, automotive and industrial segments.
Margin expansion was limited due to the change in sales mix,
which favored lower-margin products.
Analog Devices provided a modest outlook for the third
quarter, with revenues forecast to increase 4-8% sequentially.
ADI expects earnings per share in the range of 49-55 cents, in
line with the Zacks Consensus Estimate of 52 cents at the
The Zacks Consensus Estimate for the second quarter stands at
52 cents while that for fiscal 2013 stands at $2.18.
Analog Devices has beaten estimates twice in the last four
quarters while meeting estimates in the other two. There were no
estimate revisions for both the third quarter and fiscal 2013
over the past 30 days. As a result, the Zacks Consensus Estimate
for both periods has remained unchanged.
The chances of a big surprise are unlikely given the lack of
catalysts during the quarter. The stock carries a Zacks Rank #3
We caution against stocks with Zacks Rank #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
Other Stocks to Consider
Other stocks that have both a positive earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 are:
Costco Wholesale Corp.
), Earnings ESP of +0.98% and Zacks Rank #2 (Buy).
), Earnings ESP of +3.03% and Zacks Rank #2 (Buy)
ANALOG DEVICES (ADI): Free Stock Analysis
COSTCO WHOLE CP (COST): Free Stock Analysis
HASBRO INC (HAS): Free Stock Analysis Report
WEB.COM GROUP (WWWW): Free Stock Analysis
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) has an Earnings ESP of +2.38% and a Zacks Rank #3 (Hold).