Why Analog Devices Stock Briefly Jumped 6% Today
Shares of Analog Devices (NASDAQ: ADI) jumped as much as 6% higher on Wednesday morning. The maker of high-performance analog and mixed-signal chips peaked at 10:20 a.m. ET and backed down to a 2.2% gain in the afternoon. The stock jumped as Analog Devices reported analyst-stumping third-quarter results and in-line guidance for the next quarter. It backed down when management provided cautious market analysis on the earnings call.
Wall Street's consensus estimates for the third quarter pointed to adjusted earnings near $1.58 per share on revenues near $2.27 billion. Analog Devices' sales fell 25% year over year, but still beat the average analyst view at $2.31 billion. Earnings dropped 37% lower, exceeding the Street projections at $1.58 per share.
Looking ahead to the fourth quarter, management set the midpoint of their revenue guidance at $2.4 billion, with a bottom-line midpoint at $1.63 per share. Both targets are within a rounding error of the current analyst projections.
Source Fool.com
