Analog Devices Set to Report Strong Q2 Earnings on May 22

Analog Devices, Inc. (ADI) will release its second-quarter fiscal 2025 results on May 22. The company anticipates revenues of $2.50 billion, with a margin of +/- $100 million. The Zacks Consensus Estimate aligns with this projection, reflecting a year-over-year increase of 15.9%.

Additionally, Analog Devices expects adjusted earnings per share (EPS) of $1.68, within a range of +/- 10 cents. The consensus estimate remains steady at $1.69 per share, suggesting a 20.7% rise from the same quarter last year.

Notably, Analog Devices has exceeded the Zacks Consensus Estimate in each of the previous four quarters, with an average earnings surprise of 6%.

Analog Devices, Inc. Price and EPS Surprise

Analog Devices, Inc. price-eps-surprise | Analog Devices, Inc. Quote

Evaluation of Factors Influencing Q2 Results

The upcoming second-quarter performance is likely supported by inventory normalization across direct and distribution channels. Improved bookings and reduced inventory levels, surfacing after a cyclical downturn in the semiconductor industry, are anticipated to bolster ADI’s top line.

Due to ADI’s significant presence in the Chinese market, the recent U.S. tariff reductions are expected to positively impact revenues for the quarter. Moreover, strong design wins in sectors such as industrial automation, healthcare, automotive, and communications will likely contribute to ADI’s performance.

Driving factors in fiscal Q2 include ongoing growth trends in industrial automation, surgical robotics, automotive technology, AI infrastructure, and high-end consumer devices.

Nonetheless, macroeconomic challenges such as inflationary pressures and persistent high interest rates may pose obstacles for ADI in this forthcoming report.

Expectation Analysis for Earnings Release

Current projections do not indicate a definitive earnings beat for Analog Devices. A combination of a positive earnings ESP with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) boosts the likelihood of outperforming estimates, which does not apply in this instance.

At present, Analog Devices has an earnings ESP of 0.00% and holds a Zacks Rank of #3.

Stocks with Favorable Earnings Potential

For investors looking for stocks with promising earnings potential, consider the following:

Baidu (BIDU) possesses an earnings ESP of +8.67% and carries a Zacks Rank of #2. Baidu shares have dropped 15% over the past year and are set to report its first-quarter 2025 results on May 21.

NVIDIA (NVDA) features an earnings ESP of +3.87% and a Zacks Rank of #3. NVIDIA shares have risen 42% in the last year and will report its first-quarter 2025 results on May 28.

Salesforce (CRM) has an earnings ESP of +0.57% and also carries a Zacks Rank of #3. Salesforce shares increased by 1.3% over the past year and are scheduled to report their first-quarter 2025 results on May 28.

This analysis underscores active considerations for upcoming earnings reports across the market.

Analog Devices, Inc. (ADI): Stock Analysis Available

Salesforce Inc. (CRM): Stock Analysis Available

NVIDIA Corporation (NVDA): Stock Analysis Available

Baidu, Inc. (BIDU): Stock Analysis Available

This article originally published on Zacks Investment Research.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.