Analog Devices Q1 Beat Market, Issues Q2 View, Lifts Dividend, Plans $10 Bln Buyback; Stock Up

(RTTNews) - Semiconductor company Analog Devices, Inc. (ADI), while reporting weak first-quarter results but above market, on Wednesday issued outlook for second quarter. The company also raised dividend, and announced share repurchase authorization of additional $10.0 billion.

In pre-market activity on the Nasdaq, Analog Devices shares were gaining around 5 percent to trade at $231.51.

For the second quarter, the company projects earnings per share to be $0.97, plus or minus $0.10, and adjusted earnings per share of $1.68, plus or minus $0.10.

Revenue is projected to be $2.50 billion, plus or minus $100 million.

The Wall Street analysts on average expect the company to report earnings of $1.66 per share on revenues of $2.46 billion. Analysts' estimates typically exclude special items.

At the midpoint of the revenue outlook, the company expects reported operating margin of approximately 24.2 percent, plus or minus 160 bps, and adjusted operating margin of approximately 40.5 percent, plus or minus 100 bps.

Further, the ADI Board of Directors has declared a quarterly cash dividend of $0.99 per share, 8 percent higher than last year, to be paid on March 17, to all shareholders of record at the close of business on March 4.

The company also increased share repurchase authorization by $10.0 billion, bringing total remaining authorization to approximately $11.5 billion.

In its first quarter, Analog Devices' earnings came in at $391.32 million or $0.78 per share, compared with $462.73 million or $0.93 per share, last year.

Adjusted earnings were $1.63 per share for the period, compared to $1.73 per share last year. Analysts expected the company to earn $1.54 per share.

The company's revenue for the period fell 3.5 percent to $2.423 billion from $2.512 billion last year. The Street expected revenues of $2.36 billion.

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