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Chip maker Analog Devices (ADI) Wednesday beat Wall Street's estimates for its first fiscal quarter. Analog Devices' earnings report resulted in an increase in the company's inventory.
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The Norwood, Massachusetts-based company made an adjusted profit of $ 1.33 per share for a business turnover of $ 1.54 billion during the quarter ended February 2. Analysts are counting on earnings per analog Devices of $ 1.28 per share for a $ 1.51 billion business figure.
On an annual basis, earnings per share decreased by 11% and sales by 2%. Like other chip makers, Analog Devices has been affected by slower sales in the industry.
For the current quarter, the group hopes to earn $ 1.30 per share for a $ 1.5 billion business figure. Wall Street modeled the earnings of Analog Devices at $ 1.30 per share for a business turnover of $ 1.52 billion. The previous year, the chip maker had earned $ 1.45 per share for a $ 1.51 billion business figure.
Analog Devices' profits are strong despite a "difficult" climate
Shares of Analog Devices climbed 2.5% to close at 106.82 today on the stock market.
CEO Vincent Roche said the first quarter, better than expected, had been characterized by diversified activity and strong execution, despite a "difficult macroeconomic environment".
"Revenues have reached the peak of our forecasts with the continued strength of our communications market related to ongoing 4G upgrades and early deployments of 5G," he said in a press release. "In the short term, we continue to function well despite an uncertain macroeconomic environment."
On Tuesday, the company announced a 12.5% increase in its quarterly dividend to 54 cents a share. Analog Devices has multiplied its quarterly dividend by 16 over the past 15 years.
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