Analog Devices Surges 10% as it Beat Profit and Sales EstimatesAnalog Devices ( NASDAQ:ADI ), a semiconductor manufacturer, has reported better-than-expected results and guidance as inventory backlogs eased. The company's fiscal second-quarter adjusted earnings per share (EPS) of $1.40 beat estimates, while revenue slumped 34% year-over-year to $2.16 billion, but that was above forecasts. CEO Vincent Roche explained that revenue exceeded the midpoint of its outlook despite continued macro and inventory headwinds. However, he pointed out that inventory rationalization across the broad customer base is stabilizing, clearing a path for the company to return to sequential growth in the third quarter.
Analog Devices ( NASDAQ:ADI ) sees current-quarter adjusted EPS of $1.50, plus or minus $0.10, with revenue of $2.27 billion, plus or minus $100 million. Both midpoints were higher than anticipated.
Analog Devices ( NASDAQ:ADI ) forecasts robust quarterly revenue on chip market recovery, thanks to a rise in demand for its industrial chips after a prolonged slump. The upbeat forecast signals that clients are placing new orders amid signs of an easing economy. The company expects revenue of $2.27 billion, plus or minus $100 million, for the third quarter, compared with estimates of $2.16 billion, according to LSEG data.
Analog Devices ( NASDAQ:ADI ) also touted its artificial intelligence efforts and expects to drive "record revenues" for its chip testing segment in the near to mid-term due to strong demand for high-bandwidth memory chips. The company's results follow a strong forecast from chipmaker Texas Instruments, fanning optimism for a rise in analog chip demand.
Technical Outlook
Analog Devices ( NASDAQ:ADI ) stock is currently overbought with a Relative Strength Index (RSI) of 82. The stock is up 10.87% as of the time of writing and up 18% since the start of 2024.
Analogdevices
ADI Analog Devices Options Ahead of EarningsAnalyzing the options chain and the chart patterns of ADI Analog Devices prior to the earnings report this week,
I would consider purchasing the 195usd strike price Calls with
an expiration date of 2024-3-15,
for a premium of approximately $3.50.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Is Analog Device Next To Rise? This Algorithm Is Pointing...I have changed up how to best display projected movement. In the case of ADI, 3 of my algorithms signaled a BUY on March 26, 2021. Equities nearly always obey the signal and move up, but sometimes it may continue to move down first.
I have placed two red boxes and two green boxes on the chart. The larger red box depicts all of the historical movement, from a percentage standpoint, that this stock has moved on the Daily chart after a BUY signal occurred. Therefore, this box represents 100% of previous movement downward before the stock finally moved upward. The smaller red box represents 50% of all historical movement downward, before the stock moved upward. The smaller box is more of a precise target for the potential bottom in this instance.
The green boxes represent the same thing. In this instance, the smaller green box would be my projected target for the final top.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
As always, the stock could rise the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never rise (and the green boxes may never come into play).
All statistics and the full analysis are available for free as always at the site below.