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Analog Devices (ADI) to Post Q2 Earnings: What's in the Cards?

Zacks Equity Research
·4 min read

Analog Devices, Inc. ADI is scheduled to report second-quarter fiscal 2022 results on May 18.

For the fiscal second quarter, ADI expects revenues of $2.80 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.86 billion, indicating an improvement of 72.3% from the year-ago reported figure.

Analog Devices anticipates adjusted earnings per share of $2.07 (+/- $0.10). The consensus mark for the same is pegged at $2.12, indicating a 37.7% rise from the previous-year reported figure.

Earnings of ADI surpassed estimates in all the trailing four quarters, the average being 5.95%.

Analog Devices, Inc. Price and EPS Surprise

Analog Devices, Inc. Price and EPS Surprise
Analog Devices, Inc. Price and EPS Surprise

Analog Devices, Inc. price-eps-surprise | Analog Devices, Inc. Quote

Factors to Consider

Analog Devices’ fiscal second-quarter performance is likely to have benefited from solid demand for high-performance analog and mixed-signal solutions.

Strength across consumer, industrial and automotive end-markets is expected to have driven the top line of ADI in the to-be-reported quarter.

The solid momentum of Analog Devices’ precision signal chain, RF portfolios, power franchises, sensing technologies, and wired and wireless connectivity among factory automation applications is expected to have contributed well to its industrial revenues in the quarter under review.

The growing traction across BMS and A2B solutions is likely to have driven Analog Devices’ performance in the automotive market in the fiscal second quarter.

The rising uptake of BMS solution in the electric vehicle space is likely to have been a tailwind.

Strength in home entertainment, hearables and wearables is expected to have aided ADI’s performance in the consumer market in the to-be-reported quarter.

Apart from these, the Maxim acquisition, which bolstered Analog Devices’ position in the high-performance semiconductor space, is expected to have contributed well to ADI’s quarterly performance.

The growing deployment of 5G and solid momentum across the HEV platform are expected to have aided the company’s performance in the fiscal second quarter.

However, the weakening momentum across major applications and a leveraged balance sheet are anticipated to have been concerning in the quarter under review. Uncertainties and supply challenges related to the ongoing pandemic are likely to have affected the fiscal second-quarter performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Analog Devices this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Analog Devices currently has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy).

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Cisco Systems CSCO has an Earnings ESP of +0.84% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, indicating an increase of 3.6% from the prior-year period’s reported figure.

BJ’s Wholesale Club BJ has an Earnings ESP of +5.04% and a Zacks Rank of 3 at present.

BJ’s Wholesale Club is scheduled to release first-quarter 2022 results on May 19. The Zacks Consensus Estimate for BJ’s earnings is pegged at 72 cents per share, which suggest no change from the year-ago reported figure.

Advanced Auto Parts AAP has an Earnings ESP of +4.89% and a Zacks Rank of 3 at present.

Advanced Auto Parts is scheduled to release first-quarter 2022 results on May 23. The Zacks Consensus Estimate for AAP’s earnings is pegged at $3.50 per share, indicating an increase of 4.8% from the prior-year period’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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