Analog Devices shares were sinking early Wednesday after the chip maker topped expectations for its second-quarter earnings but warned of a drop in revenue for the current quarter.
(ticker: ADI) reported adjusted earnings of $2.83 a share for the April quarter, up 18% from the same period a year earlier. Quarterly revenue was $3.26 billion, up 10%.
Analysts had expected adjusted earnings of $2.75 a share on sales of $3.21 billion, according to a FactSet poll.
“Looking to the second half, we expect revenue to moderate given the continued economic uncertainty and normalizing supply chains,” CEO Vincent Roche said in a company statement. “However, I am confident in ADI’s ability to navigate short-term business cycles due to the strength and diversity of our franchise, our hybrid manufacturing model, and alignment to secular growth trends.”
The company said that for the third quarter of its fiscal year it expects adjusted earnings of between $2.42 and $2.62 a share and revenue of between $3 billion and $3.2 billion.
Analysts had penciled in adjusted earnings of $2.65 a share on revenue of $3.16 billion, according to a FactSet poll.
Analog Devices shares were down 5.5% in premarket trading on Wednesday. The stock was up 15% so far this year as of Tuesday’s close.
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