Analog Devices (ADI) to Report Q2 Earnings: What's in Store?

Analog Devices, Inc. ADI is scheduled to report second-quarter fiscal 2021 results on May 19.

For the second quarter, the company expects revenues of $1.6 billion (+/- $50 million). The Zacks Consensus Estimate for the same is pegged at $1.6 billion,indicating an improvement of 21.7% from the year-ago reported figure.

Further, it anticipates adjusted earnings per share to be $1.44 (+/-$0.08). The consensus mark for the same is pegged at $1.45 per share, indicating a 34.3% rise from the previous-year reported figure.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 5.8%.

Analog Devices, Inc. Price and EPS Surprise

Analog Devices, Inc. Price and EPS Surprise

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

Key Factors to Note

A strong demand environment across Analog Devices’ automation, instrumentation and energy businesses is expected to have benefited its fiscal second-quarter performance in the industrial end market.

Further, growing adoption of renewable energy in delivering emission-free transportation across the world is expected to have continued boosting the demand for Analog Devices’ control and sensing technologies as well as monitoring and power conversion technologies in the quarter under review.

Additionally, strong demand for the company’s battery management system (BMS) technology is likely to have continued aiding its performance in the automotive end market during the fiscal second quarter.

Analog Devices introduced BMS circuit (IC) and automotive audio bus (A2B) on Volvo’s fully-electric SUV,which might have supported the upcoming quarterly results.

Moreover, growing proliferation of hearables, wearables and home entertainment might have been other positives.

Further, increasing adoption of the company’s precision signal chain and power technologiesin 5G radio architecture might have contributed well to top-line growth during the to-be-reported quarter.

Additionally, introduction of a full-featured wireless platform for the 5G O-RAN ecosystem is likely to have been another tailwind.

This apart, robust wireless and wireline businesses of the company are anticipated to have contributed well to revenue generation from the communication market in the quarter under review.

In addition, the well-performing cabin electronics business, and growing momentum across active noise cancellation and A2B bus deployments might have beenother positives.

However, mounting expenses, communication troughs and a constrained supply environment owing to the ongoing pandemic situationare likely to have been major headwindsin the quarter under review.

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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Analog Devices has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

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.

Digital Turbine APPS has an Earnings ESP of +6.98% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pure Storage PSTG has an Earnings ESP of +10.81% and a Zacks Rank of 2, at present.

NVIDIA NVDA has an Earnings ESP of +2.11% and a Zacks Rank #2.

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