Analog Devices Q1 Profit Drops 6%, Results Miss Estimates; Boosts Dividend 13% (ADI)

Analog Devices Q1 Profit Drops 6%, Results Miss Estimates; Boosts Dividend 13% (ADI)


After the bell on Tuesday, integrated circuits maker Analog Devices, Inc. (ADI) reported a dip in first quarter earnings that missed Wall Street expectations. The company also announced that it boosted its quarterly dividend.

The Norwood, Massachusetts-based company said its first quarter net income was $131.2 million, or 42 cents per share, down from $139.4 million, or 46 cents per share, in the same quarter a year earlier.

Adjusting for one-time items, ADI posted a first quarter EPS of 44 cents. This came below Wall Street expectations, as analysts polled by Thomson Reuters were expecting the company to earn 45 cents per share.

Quarterly revenue was down as well, coming in at $622.13 million from $648.06 million a year earlier. Analysts were expecting Analog Devices to see revenue at $633.08 in the first quarter.

Despite the drop in both profit and revenue, the company did note that in January (the last month of its quarter) order rates began to improve across all markets.

Looking ahead to the second quarter, ADI is expecting revenue to grow between 4% and 8% with earnings between 49 cents and 55 cents per share. Analysts project that the company will earn 51 cents per share in the second quarter on revenue of $665.59 million.

Also on Tuesday, Analog Devices’ board said it approved a 13% increase to its regular quarterly dividend payout. The company will now pay out 34 cents per share, up from the previous quarterly payout of 30 cents per share. The dividend will be paid on March 12 with an ex-dividend date of February 27.

Analog Devices shares were down 51 cents, or -1.08%, during pre-market trading on Wednesday. Over the past year the stock is up about +18%.

The Bottom Line
Shares of Analog Devices (ADI) have a dividend yield of 2.89% based on last night’s closing price of $47.01 and the company’s updated annualized dividend payout of $1.36 per share.

Analog Devices, Inc. (ADI) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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