News

Analog Devices ADI is scheduled to report fourth-quarter fiscal 2024 results on Nov. 26.

Analog Devices expects revenues of $2.4 billion (+/- $100 million). The Zacks Consensus Estimate is also pegged at $2.40 billion, indicating a decline of 11.6% from the year-ago quarter’s figure.

ADI anticipates adjusted earnings per share of $1.63 (+/- $0.10). The consensus mark for earnings is pinned at $1.63 per share, indicating an 18.9% fall from the prior-year quarter’s figure. The estimate has remained unchanged over the past 60 days.

In the trailing four quarters, ADI’s earnings surpassed the Zacks Consensus Estimate thrice, and matched once, with an average surprise of 4.4%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Factors to Consider for ADI

Analog Devices’ fourth-quarter performance is likely to have experienced strong growth across its industrial and consumer end markets. The consensus mark for industrial revenues is pegged at $1.1 billion, indicating a fall of 19.8% from the year-ago quarter’s number. The consensus estimate for consumer revenues is pegged at $340.3 million, indicating a rise of 16.8% from the year-ago quarter’s actual.

Strength in Energy Transmission and Distribution, backed by the customers' rapid increase in upgrading and digitizing the electrical grid to respond to the accelerating energy demand partly driven by the proliferation of electric transportation and rapid AI adoption, is expected to have boosted the to-be-reported quarter’s performance.

The Automation segment is likely to have contributed strongly in the quarter under review. The recent collaboration of ADI with Flagship Pioneering, which integrates ADI's expertise in engineering for analog and digital semiconductors with the latter’s expertise in applied biology is likely to have generated, to develop a fully digitized biological world is a notable move.

Analog Devices, Inc. Price and EPS Surprise

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

However, macroeconomic challenges including the protracted inflationary conditions and still-high interest rates are likely to have posed challenges for the company in the quarter being reviewed. Additionally, escalating tensions between the United States and China may have raised concerns.

Flattish performance across communications is expected to have hurt the top line in the fiscal fourth quarter. The Zacks Consensus Estimate for communications revenues is pegged at $270.3 million, indicating a fall of 25.9% from the year-ago quarter’s reported figure.

Weakness across the Automotive end markets is likely to have weighed on the top-line performance. The Zacks Consensus Estimate for automotive revenues is pegged at $661.7 million, indicating a decline of 10.4% from the year-ago quarter’s figure.

Nonetheless, the recent deal with India’s Tata Group is likely to have benefited Analog Device’s Automotive segment during the fourth quarter. ADI has partnered with Tata Group to explore opportunities for semiconductor manufacturing in India and use ADI's products in Tata applications like electric vehicles and network infrastructure.

What Our Proven Model Says for ADI’s Q4 Earnings

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Analog Devices has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.

NVIDIA NVDA has an Earnings ESP of +1.30% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVDA’s shares have skyrocketed 196.8% year to date. It is slated to report its third-quarter 2024 results on Nov. 20.

The Zacks Consensus Estimate for NVDA’s third-quarter 2024 earnings is pegged at 75 cents per share, up by a penny over the past 60 days. This suggests a rise of 87.5% from the year-ago quarter’s reported figure.

Nutanix NTNX has an Earnings ESP of +1.64% and carries a Zacks Rank #2 at present.

NTNX shares have gained 43.5% year to date. It is set to report first-quarter fiscal 2025 results on Nov. 26.

The Zacks Consensus Estimate for NTNX’s first-quarter fiscal 2025 earnings is pegged at 31 cents per share, up by a couple of pennies over the past 60 days, indicating an improvement of 7% from the year-ago quarter’s reported figure.

Hewlett Packard HPE has an Earnings ESP of +1.51% and carries a Zacks Rank #3 at present.

HPE shares have surged 26.8% year to date. It is set to report fourth-quarter results on Dec. 5.

The Zacks Consensus Estimate for HPE’s fourth-quarter 2024 earnings is pegged at 55 cents per share, unchanged over the past 60 days, indicating an improvement of 5.8% from the year-ago quarter’s reported figure.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.