Analog Devices (NASDAQ:ADI) shares are down nearly 4.5% at the time of writing after its third-quarter numbers lagged estimates. The semiconductor maker’s revenue declined 1% year-over-year to $3.08 billion, missing estimates by $20 million. Additionally, EPS at $2.49 also fell short of expectations by $0.03.
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Amid a difficult operating environment, ADI is witnessing an impact from customer inventory adjustments. At the same time, the company is also seeing improving lead times. During the quarter, it carried out share repurchases worth $700 million and distributed $400 million in dividends.
Furthermore, the company has announced a quarterly dividend of $0.86 per share. The dividend is payable on September 14 to investors of record on September 5. Looking ahead, ADI expects fourth-quarter revenue to be around $2.70 billion, +/-$100 million.
At the midpoint of the revenue outlook, ADI anticipates an operating margin of 26.8%, +/-130 basis points. The adjusted EPS for the quarter is seen landing at $2, +/-$0.10.
Overall, the Street has a consensus price target of $206.75 for ADI, along with a Moderate Buy consensus rating. Shares have gained nearly 7.8% over the past year.
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