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Why Analog Devices Stock Fell by More Than 4% Today
ADIAnalog Devices(ADI) The Motley Fool·2025-05-22 21:06

Core Insights - Analog Devices (ADI) reported strong quarterly earnings, with revenue of 2.64billion,a222.64 billion, a 22% increase year over year, and net income nearly doubling to just under 570 million, reflecting robust performance despite market concerns [2][4] - The stock price fell over 4% following the earnings report, attributed to investor worries about the impact of ongoing tariff wars on the company's fundamentals [1][4] Financial Performance - For fiscal Q2 2025, Analog Devices achieved revenue of 2.64billion,surpassinganalystexpectationsof2.64 billion, surpassing analyst expectations of 2.51 billion [2][4] - Net income grew by almost 89% to just under 570million,withadjustedearningspersharerisingto570 million, with adjusted earnings per share rising to 1.85 from 1.40inthesameperiodoffiscal2024,exceedingtheconsensusestimateof1.40 in the same period of fiscal 2024, exceeding the consensus estimate of 1.70 [2][4] Business Segments - The automotive systems segment generated nearly 850millioninrevenue,growingby24850 million in revenue, growing by 24% year over year, partly due to increased demand linked to anticipated tariffs [5][6] - The personal electronics segment also experienced similar demand fluctuations, raising concerns about the sustainability of this growth [6] Future Outlook - The company provided guidance for the third fiscal quarter, projecting revenue between 2.65 billion and 2.85billion,withadjustednetincomeexpectedtobebetween2.85 billion, with adjusted net income expected to be between 1.82 and 2.02pershare[7]Analystsaverageestimatesfortheupcomingquarterare2.02 per share [7] - Analysts' average estimates for the upcoming quarter are 2.62 billion in revenue and $1.82 per share for adjusted profitability [7]