Microchip maker Analog Devices, Inc. (NASDAQ:ADI) early Monday posted market-beating fourth quarter earnings results and provided an upbeat outlook, sending its shares soaring in morning trading.
The Norwood, Massachusetts-based company reported Q4 adjusted net income of $1.05 per share, which was $0.15 better than the average Wall Street estimate of $0.90. Revenues rose 2.5% from last year to $1 billion, also beating out analysts’ view of $940 million.
Looking ahead, ADI’s Q1 forecast was in-line with expectations. Analog Devices expects first quarter earnings to range from $0.68 to $0.78 per share, which straddles Wall Street’s consensus $0.72 estimate. ADI also forecast Q1 revenues of $840 to $900 million, which would likely exceed the $843.79 million analysts are looking for.
The company commented via press release:
“ADI had another excellent quarter, with both revenue and earnings per share exceeding the high end of our guidance range,” said Vincent Roche, President and CEO. “Revenue increased to a record $1 billion on broad strength across all of our markets, and our focus on sustainable and differentiated innovation, combined with strong operational execution, helped drive profitability and cash flow generation to record levels.”
Analog Devices shares rose $3.18 (+4.55%) to $73.00 in premarket trading Tuesday. Prior to today’s report, ADI had gained 26.21% year-to-date, versus a 7.99% rise in the benchmark S&P 500 index during the same period.