By RTT News,
May 20, 2014, 05:14:00 PM EDT
(RTTNews.com) - Chipmaker Analog Devices, Inc. ( ADI ) said Tuesday after the markets closed that its second quarter profit rose 14% from last year, helped by higher revenue and improved margins.
The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave an upbeat outlook for the current quarter.
"We had a very good second quarter, with our performance ahead of expectations," said Vincent Roche, President and CEO of Analog Devices. "Our growth this quarter was broad-based, fueled by secular and seasonal strength, particularly in the industrial, communications infrastructure, and automotive markets, which accounted for 89% of our sales. We expect these trends to continue into the third quarter driving sequential revenue growth of 1% to 5% with strong profitability."
The company also said its Board of Directors has declared a cash dividend of $0.37 per share, payable on June 10 to shareholders of record on May 30.
Analog Devices shares are currently gaining 1% in after hours trading after closing the day's regular trading session unchanged at $51.98. The shares trade in a 52-week range of $43.86 to $54.40.
For the second quarter ended May 3, 2014, the Norwood, Massachusetts-based company reported net income of $187.4 million or $0.59 per share, compared to $164.5 million or $0.52 per share for the year-ago quarter.
On average, 27 analysts polled by Thomson Reuters expected the company to earn $0.56 per share for the second quarter.
Gross margin for the second quarter improved to 66.1% from 64.0% a year earlier. Operating margin for the quarter increased to 31.7% from 29.0% a year ago on a reported basis and improved to 31.7% from 30.0% last year on an adjusted basis.
Revenue for the second quarter rose 5% to $694.54 million from $659.25 million in the same quarter last year. Twenty-four analysts had a consensus revenue estimate of $670.93 million for the second quarter.
Looking forward to the third quarter, the company forecasts revenue to be up 1% to 5% sequentially, implying revenue of $701.49 million to $729.27 million, and earnings to be $0.60 to $0.64 per share. Analysts currently expect the company to earn $0.61 per share on revenue of $695.00 million for the third quarter.
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