Credit: Shutterstock photoMicrochip maker Analog Devices, Inc. ( ADI ) on Wednesday posted third quarter earnings and provided a full-year forecast that fell below analyst expectations.
The Norwood, MA-based company reported fiscal third quarter net income of $219.9 million, or 71 cents per share, compared with $199.5 million, or 65 cents per share, in the year-ago period.
Revenue rose 5% from last year to $757.9 million.
On average, Wall Street analysts expected a higher profit of 73 cents per share, on larger revenue of $780 million.
Analog CEO Jerald Fishman defended the results, saying "We believe that most of the revenue shortfall was the result of supply chain recalibration, not a change in underlying demand."
Still, the company provided a fourth quarter outlook that also fell below analyst estimates. ADI said it expects fourth quarter profits to range from 60 cents to 68 cents per share on revenue of $715 million to $755 million. Analysts currently expect 72 cents per share on $780.2 million in revenue for the quarter.
Analog Devices shares fell 73 cents, or -2.3%, in premarket trading Wednesday.
The Bottom Line
Shares of Analog Devices ( ADI ) have a 3.19% dividend yield, based on last night's closing stock price of $31.35. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.
Analog Devices, Inc. ( ADI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
