Analog Devices (NASDAQ:ADI) Issues Q2 Earnings Guidance

Analog Devices (NASDAQ:ADI) updated its second quarter earnings guidance on Wednesday. The company provided earnings per share guidance of $1.58-1.78 for the period, compared to the consensus earnings per share estimate of $1.66. The company issued revenue guidance of $2.40-2.60 billion, compared to the consensus revenue estimate of $2.46 billion. Analog Devices also updated its Q2 2025 guidance to 1.580-1.780 EPS.

Analog Devices Price Performance

ADI stock traded up $3.98 during trading on Thursday, reaching $245.64. The company’s stock had a trading volume of 1,260,755 shares, compared to its average volume of 3,590,202. Analog Devices has a 1 year low of $182.57 and a 1 year high of $247.10. The company has a quick ratio of 1.35, a current ratio of 1.84 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $121.86 billion, a P/E ratio of 74.66, a price-to-earnings-growth ratio of 2.53 and a beta of 1.04. The company’s fifty day moving average is $214.54 and its 200-day moving average is $219.80.

Analog Devices (NASDAQ:ADI) last announced its quarterly earnings results on Wednesday, February 19th. The semiconductor company reported $1.63 EPS for the quarter, beating analysts’ consensus estimates of $1.54 by $0.09. Analog Devices had a net margin of 17.35% and a return on equity of 9.01%. The firm had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.36 billion. During the same quarter last year, the firm earned $1.73 EPS. The firm’s revenue for the quarter was down 3.6% compared to the same quarter last year. On average, research analysts expect that Analog Devices will post 7.09 earnings per share for the current fiscal year.

Analog Devices Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Tuesday, March 4th will be paid a dividend of $0.99 per share. This represents a $3.96 annualized dividend and a dividend yield of 1.61%. The ex-dividend date is Tuesday, March 4th. This is an increase from Analog Devices’s previous quarterly dividend of $0.92. Analog Devices’s payout ratio is currently 111.85%.

Analog Devices declared that its board has initiated a stock buyback program on Tuesday, February 18th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to repurchase up to 9.2% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. TD Cowen decreased their target price on shares of Analog Devices from $270.00 to $260.00 and set a “buy” rating for the company in a research report on Wednesday, November 27th. Wells Fargo & Company upped their price target on shares of Analog Devices from $220.00 to $240.00 and gave the stock an “equal weight” rating in a research report on Thursday. Needham & Company LLC reiterated a “hold” rating on shares of Analog Devices in a report on Thursday. UBS Group raised their price target on shares of Analog Devices from $275.00 to $300.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Piper Sandler lowered their price objective on shares of Analog Devices from $235.00 to $220.00 and set a “neutral” rating for the company in a research report on Wednesday, November 27th. Seven analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, Analog Devices currently has an average rating of “Moderate Buy” and an average target price of $253.14.

Insider Buying and Selling at Analog Devices

In other Analog Devices news, CEO Vincent Roche sold 10,000 shares of the company’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $215.49, for a total value of $2,154,900.00. Following the sale, the chief executive officer now owns 21,983 shares of the company’s stock, valued at $4,737,116.67. This represents a 31.27 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.33% of the stock is currently owned by company insiders.

About Analog Devices

Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.