What's in the Offing for Analog Devices (ADI) in Q2 Earnings?

Jul 16, 2023

Analog Devices, Inc. (ADI Quick QuoteADI - Free Report) is scheduled to report second-quarter fiscal 2023 results on May 24.For the fiscal second quarter, ADI expects revenues of $3.20 billion (+/- $100 million). The Zacks Consensus Estimate for ADI's revenues is pegged at $3.21 billion, indicating an improvement of 7.9% from the year-ago fiscal quarter's reported figure.Analog Devices anticipates adjusted earnings per share of $2.75 (+/- $0.10). The consensus mark for second-quarter earnings is pegged at $2.75 per share, indicating a 14.6% rise from the previous-year fiscal quarter's reported figure.Earnings of ADI surpassed estimates in all the trailing four quarters, the average being 7.23%.

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

Analog Devices’ performance in the fiscal second quarter is likely to have benefited from solid demand for high-performance analog and mixed-signal solutions.Strength across industrial, communications and automotive end markets is expected to have driven ADI's top line 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 rising uptake of the Battery Management System (BMS) solution in the electric vehicle space is likely to have been a tailwind.The growing traction across A2B solutions is likely to have driven Analog Devices’ performance in the automotive market in the fiscal second quarter.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.The growing deployment of 5G and solid momentum across the HEV platform is expected to have aided ADI's performance in the fiscal second quarter.However, the weakening momentum across major applications, a sluggish consumer market and a leveraged balance sheet are anticipated to have been concerning in the quarter under review.Uncertainties and supply challenges related to the coronavirus pandemic are likely to have affected the fiscal second quarter performance.

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. However, that is not the case here, as elaborated below.Analog Devices currently has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.The company currently carries a Zacks Rank #3.

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.American Eagle Outfitters (AEO Quick QuoteAEO - Free Report) has an Earnings ESP of +9.81% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.AEO is scheduled to release first-quarter 2023 results on May 24. The Zacks Consensus Estimate for AEO's earnings is pegged at 17 cents per share, suggesting a rise of 6.2% year over year.C3.ai (AI Quick QuoteAI - Free Report) has an Earnings ESP of +6.67% and currently carries a Zacks Rank #3.C3.ai is set to report fourth-quarter fiscal 2023 results on May 31. The Zacks Consensus Estimate for AI's loss is pegged at 17 cents per share. The company reported a loss of 21 cents per share in the year-ago quarter.Costco Wholesale (COST Quick QuoteCOST - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3 at present.COST is scheduled to report third-quarter fiscal 2023 results on May 25. The Zacks Consensus Estimate for COST's earnings is pegged at $3.32 per share, suggesting an increase of 4.7% from the prior-year quarter's reported figure.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.