Chipmaker Analog Devices on Tuesday roughly matched analyst estimates for its fiscal fourth quarter but offered an outlook well below views for the current period. ADI stock fell after the report.
The Wilmington, Mass.-based company earned an adjusted $2.01 a share on sales of $2.72 billion in the quarter ended Oct. 28. Analysts polled by FactSet had expected earnings of $2.02 a share on sales of $2.7 billion. On a year-over-year basis, Analog Devices earnings declined 26% while sales slid 16%.
For the current quarter, Analog Devices predicted adjusted earnings of $1.70 a share on sales of $2.5 billion. Analysts had been looking for earnings of $1.91 a share on sales of $2.69 billion in the fiscal first quarter. In the year-earlier period, the chipmaker earned $2.75 a share on sales of $3.25 billion.
Chief Executive Vincent Roche cited continued macroeconomic difficulties and high chip inventories in the sales channel.
"As outlined last quarter, we expect customer inventory digestion to persist into the first half of the year," Roche said in a news release.
ADI Stock Slides After Report
The automotive market remained a bright spot for the company, with year-over-year sales growth of 14% in fiscal Q4. However, Analog Devices reported sales declines in its industrial, communications and consumer business segments.
On the stock market today, ADI stock dropped 1.4% to close at 181.25.
Analog Devices ranks fourth out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. ADI stock has an IBD Composite Rating of 79 out of 99.
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