- Wednesday, October 16, 2024
Analog Devices Inc. stock (ADI, -0.32%) experienced a significant decline of nearly 8% during premarket trades on Wednesday. This drop was triggered by the chip maker's adjusted third-quarter profit falling short of Wall Street estimates.
According to FactSet data, Analog Devices reported a 4% increase in profit for the three months ending July 29. The company's profit reached $929 million, or $1.74 per share, compared to $893 million, or $1.44 per share, in the year-ago period. However, analysts were anticipating earnings of $2.52 per share, whereas the adjusted profit for the third quarter came in at $2.49 per share.
Furthermore, Analog Devices' revenue experienced a slight decline of 1%, amounting to $3.08 billion. This figure fell just short of the analyst estimate of $3.1 billion.
Vincent Roche, CEO of Analog Devices, acknowledged the challenging operating environment faced by the company but emphasized that their results were in line with expectations. Roche also cautioned about potential hurdles in the near term, stating that "customer inventory adjustments we mentioned last quarter have accelerated as economic conditions deteriorate and our lead times continue to improve."
Despite these immediate challenges, Analog Devices remains optimistic about its long-term outlook.
Key Points:
- Analog Devices Inc. stock (ADI, -0.32%) fell approximately 8% during premarket trades following below expectations Q3 profit.
- Profits for the three months ending July 29 rose by 4% to $929 million compared to $893 million in the year-ago period.
- Adjusted Q3 profit reached $2.49 per share, falling short of analysts' estimated earnings of $2.52 per share.
- Revenue decreased by 1% to $3.08 billion, slightly below the projected $3.1 billion.
- CEO Vincent Roche warned of near-term turbulence due to customer inventory adjustments and economic conditions.
- Analog Devices remains positive about its long-term outlook.
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