Analog Devices (NASDAQ:ADI) Announces Earnings Results, Beats Expectations By $0.09 EPS

Analog Devices (NASDAQ:ADI - Get Free Report) issued its quarterly earnings results on Wednesday. The semiconductor company reported $1.63 earnings per share for the quarter, beating the consensus estimate of $1.54 by $0.09, Zacks reports. The company had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.36 billion. Analog Devices had a return on equity of 8.91% and a net margin of 16.75%. The business's quarterly revenue was down 3.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.73 earnings per share. Analog Devices updated its Q2 2025 guidance to 1.580-1.780 EPS and its Q2 guidance to $1.58-1.78 EPS.

Analog Devices Stock Down 2.0 %

NASDAQ:ADI traded down $4.91 on Friday, hitting $238.91. The stock had a trading volume of 5,545,154 shares, compared to its average volume of 3,730,419. The business's fifty day moving average is $215.06 and its 200 day moving average is $219.97. The company has a market cap of $118.52 billion, a PE ratio of 76.09, a P/E/G ratio of 2.76 and a beta of 1.04. The company has a quick ratio of 1.35, a current ratio of 1.93 and a debt-to-equity ratio of 0.19. Analog Devices has a 52 week low of $182.57 and a 52 week high of $247.10.

Analog Devices Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Tuesday, March 4th will be issued a $0.99 dividend. The ex-dividend date of this dividend is Tuesday, March 4th. This represents a $3.96 annualized dividend and a yield of 1.66%. This is a positive change from Analog Devices's previous quarterly dividend of $0.92. Analog Devices's dividend payout ratio is presently 126.11%.

Analyst Ratings Changes

Several brokerages have recently weighed in on ADI. Benchmark increased their price target on Analog Devices from $245.00 to $275.00 and gave the company a "buy" rating in a research note on Thursday. Piper Sandler decreased their price target on Analog Devices from $235.00 to $220.00 and set a "neutral" rating for the company in a research note on Wednesday, November 27th. Morgan Stanley increased their price target on Analog Devices from $248.00 to $250.00 and gave the company an "overweight" rating in a research note on Thursday. Barclays decreased their price target on Analog Devices from $250.00 to $210.00 and set an "equal weight" rating for the company in a research note on Friday, January 17th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of Analog Devices in a research note on Thursday. Seven equities research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $255.19.

Insider Activity

In other news, CEO Vincent Roche sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $215.83, for a total value of $2,158,300.00. Following the transaction, the chief executive officer now owns 21,983 shares in the company, valued at $4,744,590.89. This trade represents a 31.27 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.33% of the company's stock.

Analog Devices declared that its Board of Directors has initiated a stock repurchase program on Tuesday, February 18th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to buy up to 9.2% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its shares are undervalued.

About Analog Devices

Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.