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Analog Devices Posts Q4 Beat, Analysts Say Industry Shows Early Signs Of Cyclical Recovery
ADIAnalog Devices(ADI) Benzinga·2025-02-20 16:23

Core Viewpoint - Analog Devices Inc reported strong fiscal first-quarter results, with sales and earnings exceeding consensus expectations, leading to a rise in share prices [1][2]. Financial Performance - The company achieved revenues of 2.43billion,surpassingtheconsensusestimateof2.43 billion, surpassing the consensus estimate of 2.36 billion, and earnings of 1.63pershare,exceedingexpectationsof1.63 per share, exceeding expectations of 1.54 per share [4]. - Sales were 3% above consensus, and earnings were 6% higher than expected, with all verticals showing improvement during the quarter [2]. Guidance and Outlook - For the fiscal second quarter, Analog Devices provided guidance of 2% revenue growth and 1% earnings growth, both above consensus [2]. - Analysts project a revenue growth of 9% for fiscal 2025, driven by strength in the Industrial and Automotive sectors [6]. Dividend and Share Repurchase - The company announced an 8% increase in its dividend and authorized an additional 10billionforsharerepurchases,indicatingapositiveoutlookonbusinessperformance[3].MarketTrends−Analystsnotedsignsofacyclicalrecoveryinthemarket,withChinaidentifiedasaprimarygrowthdriverintheautomotivesector,contributingtobetter−than−expectedresults[5].−Inventorylevelshavenormalizedacrossvariouschannelsandmarkets,allowingthecompanytoalignshipmentswithconsumptionintheupcomingquarter[5].AnalystRatings−Oppenheimerraiseditspricetargetfrom10 billion for share repurchases, indicating a positive outlook on business performance [3]. Market Trends - Analysts noted signs of a cyclical recovery in the market, with China identified as a primary growth driver in the automotive sector, contributing to better-than-expected results [5]. - Inventory levels have normalized across various channels and markets, allowing the company to align shipments with consumption in the upcoming quarter [5]. Analyst Ratings - Oppenheimer raised its price target from 245 to 270whilemaintaininganOutperformrating[7].−JPMorganincreaseditspricetargetfrom270 while maintaining an Outperform rating [7]. - JPMorgan increased its price target from 280 to 300,reiteratinganOverweightrating[7].−Benchmarkraiseditspricetargetfrom300, reiterating an Overweight rating [7]. - Benchmark raised its price target from 245 to $275, reaffirming a Buy rating [7]. - Needham maintained a Hold rating on the stock [7].