We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Analog Devices (ADI) Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Analog Devices, Inc. (ADI - Free Report) , one of the world leaders in the design, manufacture and marketing of high-performance analog, mixed-signal and digital signal processing integrated circuits, will report first-quarter fiscal 2017 results on Feb 15, before the opening bell.
The company’s earnings surprise history is impressive as it has beaten estimates in all of the last four quarters with an average positive surprise of 8.36%.
Shares of Analog Devices have outperformed the Zacks Semiconductor-Analog and Mixed industry in the last three months. The stock returned 15.2%, while the industry gained 11.5%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Analog Devices delivered better-than-expected results for the fourth quarter, surpassing the Zacks Consensus Estimate on both counts. These strong results were driven by strength across all the markets – industrial, automotive consumer and communications as well as the company’s increased focus on innovation and operational execution.
In 2015, the company successfully incorporated Hittite and expanded the available opportunities. Moreover, it expects to deliver strong revenue synergies from 2017.
Analog Devices is in the process of acquiring Linear Technology . The acquisition is expected to make Analog Devices an industry leader across a huge range of products, customer breadth and scale. The deal will also help it to grow significantly in industrial, automotive and communications infrastructure markets.
While its investments are aimed at strengthening the product line and countering increasing competition, the policy of returning cash through dividends and share buybacks is likely to ensure investor loyalty.
For the first quarter of fiscal 2017, management expects revenues in a range of $840 million to $900 million. On a non-GAAP basis, while the company estimates gross margin approximately in the band of 65.5% to 66.0%, operating expenses should be up sequentially. Also, interest and other expenses are expected between $20 million and $25 million, tax rate of approximately 11% and earnings per share in a range of 68–78 cents.
Our proven model does not conclusively show that Analog Devices will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 74 cents. Therefore, the Earnings ESP for the stock is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Analog Devices carry a Zacks Rank #3, which when combined with a ESP of 0.00% makes a surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some stocks that you may want to consider as our model shows these have the right combination of elements to post a positive earnings surprise:
Western Digital Corporation (WDC - Free Report) , with an Earnings ESP of +4.65% and a Zacks Rank #1.
Broadcom Ltd. (AVGO - Free Report) , with an Earnings ESP of +1.74% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Analog Devices (ADI) Q1 Earnings: What's in the Cards?
Analog Devices, Inc. (ADI - Free Report) , one of the world leaders in the design, manufacture and marketing of high-performance analog, mixed-signal and digital signal processing integrated circuits, will report first-quarter fiscal 2017 results on Feb 15, before the opening bell.
The company’s earnings surprise history is impressive as it has beaten estimates in all of the last four quarters with an average positive surprise of 8.36%.
Shares of Analog Devices have outperformed the Zacks Semiconductor-Analog and Mixed industry in the last three months. The stock returned 15.2%, while the industry gained 11.5%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Analog Devices delivered better-than-expected results for the fourth quarter, surpassing the Zacks Consensus Estimate on both counts. These strong results were driven by strength across all the markets – industrial, automotive consumer and communications as well as the company’s increased focus on innovation and operational execution.
In 2015, the company successfully incorporated Hittite and expanded the available opportunities. Moreover, it expects to deliver strong revenue synergies from 2017.
Analog Devices is in the process of acquiring Linear Technology . The acquisition is expected to make Analog Devices an industry leader across a huge range of products, customer breadth and scale. The deal will also help it to grow significantly in industrial, automotive and communications infrastructure markets.
While its investments are aimed at strengthening the product line and countering increasing competition, the policy of returning cash through dividends and share buybacks is likely to ensure investor loyalty.
For the first quarter of fiscal 2017, management expects revenues in a range of $840 million to $900 million. On a non-GAAP basis, while the company estimates gross margin approximately in the band of 65.5% to 66.0%, operating expenses should be up sequentially. Also, interest and other expenses are expected between $20 million and $25 million, tax rate of approximately 11% and earnings per share in a range of 68–78 cents.
Analog Devices, Inc. Price and EPS Surprise
Analog Devices, Inc. Price and EPS Surprise | Analog Devices, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Analog Devices will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 74 cents. Therefore, the Earnings ESP for the stock is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Analog Devices carry a Zacks Rank #3, which when combined with a ESP of 0.00% makes a surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some stocks that you may want to consider as our model shows these have the right combination of elements to post a positive earnings surprise:
Seagate Technology plc (STX), with an Earnings ESP of +0.95% and Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Western Digital Corporation (WDC - Free Report) , with an Earnings ESP of +4.65% and a Zacks Rank #1.
Broadcom Ltd. (AVGO - Free Report) , with an Earnings ESP of +1.74% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>