Analog Devices Inc. (NASDAQ: ADI) has confirmed that it will release its fourth-quarter results on November 23, 2021.
What to look for
The company is expected to deliver YoY earnings growth on hog revenues when it reports its earnings for the recently ended quarter. Therefore, the stock could move higher if the earnings beat expectations once the company releases its earnings report on November 23, 2021. However, the stock may move lower if the company misses estimates.
Earnings: Stockearning’s Estimated EPS for the current quarter under review is expected to be $1.69 per share, representing a YoY growth of 17.4%. The company reported adjusted earnings of $1.72 per share in the third quarter, representing a 26% YoY increase. Historical EOPS Performance shows that in the past 12 quarters, the company has topped earnings 11 times (91%) and missed once (8%).
Revenue: The company expects revenue of $2.3 billion, representing a YoY increase of 51%. In the third quarter, the company had revenue of $1.76 billion, representing an increase of 21%.
Stock Movement: Since the last earnings release, Analog Devices stock has gained 12.5%. Analog Devices stock has been UP 28 times out of the past 48 quarters after the earnings release. So, the historical price reaction suggests a 58% probability of the share price going UP once Analog Devices releases Q3 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 2%, while the predicted move on the seventh day is 3%.
What analysts are saying
UBS analyst Pradeep Ramani commenced coverage of Analog Devices with a “Buy” rating and price target of $210. Ramani considers the company a "quality stock with a catalyst," adding we are in the specialized analog age.
JPMorgan analyst Harlan Sur upgraded Analog Devices from "Hold" to "Buy" with a target price of $215, up from $119 after a period of restriction. Sur favors semiconductor stocks with robust market leadership, free/margin cash flow expansion, string diversification, and solid payout ratios. The analyst says the upgrade fits his thesis, and the marker underappreciated Maxim's solid revenue growth profile. He told investors in a research note that the acquisition will drive sustainable gross margin expansion for the company beyond synergies.
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