Analog Devices, Inc. based in Massachusetts, is gearing up to release its first-quarter fiscal 2024 financial results on Feb 21, providing investors with an eagerly anticipated snapshot of the company’s performance over the past quarter.
For the fiscal first quarter, ADI expects revenues of $2.50 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.50 billion, indicating a decline of 23.1% from the year-ago reported figure.
Anticipating the adjusted earnings per share to be around $1.70 (+/- $0.10), Analog Devices’ performance will be closely scrutinized by investors. The consensus mark for the same is pegged at $1.71 per share, indicating a 37.8% fall from the previous year’s reported figure.
The company’s earnings have exceeded estimates in two of the past four quarters, while matching the same once and missing it on another occasion.
Anticipated Performance and Fiscal Trends
The current quarter saw upward momentum in automotive markets, which is expected to have led the way for Analog Devices’ top-line performance. This momentum is particularly attributed to the company’s robust Battery Management System solutions that have found favor in the growing electric vehicle space.
While the automotive sector is anticipated to showcase resilience, a challenging macroeconomic landscape may cast a shadow over the broader fiscal performance.
Amidst a turbulent economic backdrop, the communications market may have encountered a slowdown due to inventory corrections, potentially impacting the company’s overall performance.
Similarly, the industrial sector faced headwinds due to an inventory correction, potentially resulting in weakness in the industrial end-market.
The consumer market, reeling under the pressure of weak demand, is also expected to have dented Analog Devices’ prospects in the fiscal first quarter.
Earnings Expectations
Notwithstanding the aforementioned factors, the market sentiment remains uncertain as our model does not conclusively predict an earnings beat for Analog Devices this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but Analog Devices currently has an Earnings ESP of 0.00%. The company carries a Zacks Rank #4 (Sell).
Stock Market Alternatives
For investors interested in the sector, several stocks appear promising. The Gap (GPS) and Eldorado Gold (EGO) stand out with their favorable earnings ESP and Zacks Rank. Similarly, Booking Holdings (BKNG) is a stock to keep an eye on for potential future growth.
As the earnings date approaches, investors are advised to keep abreast of the latest market developments through the Zacks Earnings Calendar.
Zacks Names #1 Semiconductor Stock
More growth opportunities are brewing in the semiconductor space. Investors are urged to pay heed to the changing tides in this industry, as global semiconductor manufacturing is projected to skyrocket from $452 billion in 2021 to $803 billion by 2028. Only time will tell if Analog Devices is poised to ride these waves to profitability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
