NEWS: Chipmaker Analog Devices Inc. reported better-than-expected earnings for its fiscal fourth-quarter Tuesday but its sales fell below Wall Street estimates. The Norwood, Mass., company warned that it expects a seasonal slowdown to hurt revenue during the holiday season and its shares fell in afterhours trading.
DETAILS: The company said customer shutdowns and inventory reductions will put pressure on sales during December and January and revenue is expected to fall in the first quarter of next year compared with the prior-year period. The company says it will work to control costs by reducing factory production until growth resumes.
NET INCOME: For the quarter that ended Nov. 2, net income rose to $201.6 million, or 64 cents per share, from $179.2 million, or 58 cents per share in the prior year period. Sales fell 2 percent to $678.1 million. Analysts polled by FactSet predicted earnings per share of 58 cents on revenue of $689 million.
FUTURE: Looking ahead to the first quarter of fiscal 2014, Analog said it expects diluted earnings per share between 44 and 52 cents per share. That was well below the consensus estimate of 57 cents per share from Wall Street analysts.
STOCK: Shares of Analog Devices Inc. fell $1.92, or 3.9 percent, to $48 in afterhours trading. Shares closed the regular trading session up 26 cents to $49.92.