IC-Maker Analog Devices Offers Dismal Q1 Guidance
Shareholders in Analog Devices, Inc. (NASDAQ: ADI) have received a concerning jolt Thursday afternoon following news of sharply lowered first-quarter sales guidance from the company.
A company press release showed a reduction in quarterly sales from a previously issued $805 million to $855 million range to a new range of $745 million to $765 million. This compares to the current analyst estimate of nearly $830 million in sales.
Earnings on a pro-forma basis are expected to be in the $0.51 to $0.55 per share range, versus the sell-side consensus estimate of $0.69. GAAP EPS is expected to be $0.47 to $0.51.
The Analog Devices press release said the lowered sales guidance was the result of "weaker than forecasted customer demand in the company's portable consumer business unit, which began in December, and is expected to continue into the second fiscal quarter."
The company is scheduled to report first-quarter results on February 17, 2016.
Analog Devices shares last traded at $48.60, down nearly 3 percent from Thursday's closing price of $50.50.
Investors in the space may want to watch peers in the Semiconductor space as traders may view the weakness as possible spilling over into other names. Stocks like Texas Instruments Incorporated (NASDAQ: TXN), Maxim Integrated Products Inc. (NASDAQ: MXIM) and Linear Technology Corporation (NASDAQ: LLTC) are a few notable mentions to track.
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