Analog Devices, Inc
) is set to report third-quarter 2013 results on Aug 20. Last
quarter, it posted a -3.85% surprise. Let's see how things are
shaping up for this announcement.
Factors this Past Quarter
Analog's second-quarter earnings were below the Zacks
Consensus Estimate due to higher-than-expected operating
expenses. However, revenues were up sequentially driven by the
strength in industrial and automotive segments. Analog reported
operating margin of 29.0%, which was down 250 basis points (bps)
from the year-ago quarter.
Analog provided a tepid outlook for the third quarter, with
revenues expected in the range of $655 million to $685 million,
lower than analysts' expectations of $688 million. The company
estimates gross margin to be 64.5%, operating expenses of around
$226 million, a tax rate of 16.5% and earnings per share of 51
The Zacks Consensus Estimate for the third quarter stands at
54 cents while that for fiscal 2013 stands at $2.10.
Analog Devices has beaten estimates once in the last four
quarters, missed once, while reporting in-line results 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 have remained
unchanged. The stock carries a Zacks Rank #2 (Buy).
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 momentum.
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:
R.R. Donnelley & Sons Company
), Earnings ESP of +2.50% and a Zacks Rank #3 (Strong Buy)
), Earnings ESP of +2.30% and a Zacks Rank #2 (Buy)
Computer Sciences Corp.
), Earnings ESP of +1.18% and a Zacks Rank #2 (Buy)
ANALOG DEVICES (ADI): Free Stock Analysis
COMP SCIENCE (CSC): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
DONNELLEY (RR) (RRD): Free Stock Analysis
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