By Dean Seal
Analog Devices recorded an expected decline in revenue for the fiscal first quarter but said some sequential improvement should continue into the current quarter.
The Wilmington, Mass., chipmaker posted $391.3 million, or 78 cents a share, for the quarter ended Feb. 1, compared with $462.7 million, or 93 cents a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were $1.63 a share. Analysts surveyed by FactSet had been expecting $1.54 a share.
Revenue fell 4% year-over-year to $2.42 billion, but still cleared analyst forecasts for $2.36 billion, according to FactSet.
Chip sales to industrial markets, its biggest revenue contributor, were down 10%. Automotive chip sales were down 2% and communications product sales were down 4%. The declines were partially offset by a 19% revenue jump for sales to consumer markets.
Chief Financial Officer Richard Puccio said bookings showed gradual improvement and should be on the rise in the current quarter. Cyclical dynamics are getting stronger despite a challenging backdrop, Chief Executive Vincent Roche said.
For the fiscal second quarter that started Feb. 2, the company is forecasting $2.4 billion to $2.6 billion in revenue and adjusted earnings of $1.58 to $1.78 a share. Analysts polled by FactSet had been projecting adjusted earnings of $1.66 a share on $2.46 billion in revenue.
Shares rose 5.4% to $232 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 19, 2025 07:29 ET (12:29 GMT)
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