ADI•ADI•Analog Devices said fiscal third-quarter revenue rose 40% year over year to $4.02 billion, beating analyst expectations of $3.92 billion.
Adjusted earnings per share for the quarter increased 68% year over year to $3.45, compared with consensus expectations of $3.33. Reported EPS was $2.74.
Adjusted operating income was $2.01 billion, above the $1.93 billion consensus estimate. Adjusted operating margin was 50.0%.
The current average analyst rating on the shares is buy, with 29 strong buy or buy ratings, 4 hold ratings and no sell or strong sell ratings.
The average consensus recommendation for the semiconductors peer group is also buy.
Wall Street's median 12-month price target for Analog Devices is $460.00, about 22.1% above its August 18 closing price of .
The stock recently traded at 26 times next-12-month earnings, versus 33 times three months ago.
Analog Devices forecast fourth-quarter revenue of $4.3 billion, plus or minus $100 million.
The company expects fourth-quarter reported EPS of $3.14, plus or minus $0.15, and adjusted EPS of $3.86, plus or minus $0.15.
It also expects fourth-quarter reported operating margin of 42.6% and adjusted margin of 52.0%.
During the quarter, Analog Devices returned $1.7 billion to shareholders through dividends and share repurchases.
The company said demand strengthened across its product portfolio and regions, supporting the fiscal third-quarter results.
Year-over-year revenue growth was led by the Data Center and Industrial segments.
CEO Vincent Roche said the results reflected innovation, deep customer collaboration and manufacturing agility.
