Analog Devices (NASDAQ:ADI) shares were moving lower in pre-open Wednesday after the company reported weaker-than-expected results for its fiscal third quarter and gave an outlook for this quarter that trailed analyst estimates.
Analog Devices reported an EPS of $2.49, which fell short of the analyst estimate of $2.52 by $0.03. The revenue for the quarter amounted to $3.08 billion, slightly below the consensus estimate of $3.1B.
“In a challenging operating environment, ADI executed well, and delivered third quarter results within our expectations. However, the customer inventory adjustments we mentioned last quarter have accelerated as economic conditions deteriorate and our lead times continue to improve,” said Vincent Roche, CEO and Chair.
Adjusted gross and operating margins came in at 72.2% and 47.8%, respectively. Analysts were looking for 72.6% and 48.6%.
Looking ahead, Analog Devices anticipates EPS in the range of $1.90 to $2.10, which contrasts with the consensus estimate of $2.39. Additionally, Analog Devices foresees fourth quarter revenue ranging from $2.6-2.8B, as opposed to the consensus estimate of $3B.
“Despite the near-term turbulence, we have built a resilient business over many decades defined by our diversified customer and product portfolio and our flexible hybrid manufacturing model. This enables us to endure softer demand periods, while sustaining strategic investments to ensure we capitalize when the business inflects.”