Analog Devices Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Analog Devices, Inc. (NYSE:ADI) will unveil its latest earnings on Tuesday, May 22, 2012. Analog Devices designs, manufactures, and markets analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications.

Analog Devices, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 51 cents per share, a decline of 32% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 54 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 51 cents during the last month. Analysts are projecting profit to rise by 19.9% compared to last year’s $2.18.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 46 cents per share versus a mean estimate of profit of 48 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 15.8% in revenue from the year-earlier quarter to $665.7 million.

Analyst Ratings: Analysts are optimistic about this stock, with 12 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

A Look Back: In the first quarter, profit fell 37.2% to $139.4 million (46 cents a share) from $222.1 million (72 cents a share) the year earlier, missing analyst expectations. Revenue fell 11% to $648.1 million from $728.5 million.

Key Stats:

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 18.4% in the fourth quarter of the last fiscal year and then again in the first quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 7% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Stock Price Performance: Between March 20, 2012 and May 16, 2012, the stock price had fallen $3.70 (-9.2%), from $40.05 to $36.35. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 1, 2012, when shares rose for seven straight days, increasing 4.9% (+$1.82) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 12% (-$4.32) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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