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Analog Devices Inc. (NASDAQ: ADI) reported its financial results for the fiscal first quarter on Wednesday that topped analysts’ estimates for profit and revenue. Its free cash flow, however, fell shy of what experts had forecast. Nonetheless, the U.S. company lifted its dividend on Wednesday by 11%.

Analog Devices shares, that you can learn to buy online here, were reported about 3.5% down in premarket trading on Wednesday. The stock is now trading at a per-share price of £112 per share.

Analog Devices’ Q1 financial results versus analysts’ estimates

Analog Devices said that its net income in the quarter that concluded on 30th January printed at £280.28 million that translates to 75 pence per share. In the same quarter last year, its net income was capped at a much lower £147.10 million or 39.68 pence per share.

Analog’s earnings report comes a day after Palantir Technologies said that it swung to £106 million of net loss in fiscal Q4.

Adjusted for one-time items, the American multinational earned £1.04 per share in Q1 versus the year-ago figure of 74 pence per share. Analog Devices said that it generated £1.13 billion of revenue in the recent quarter that represents a 20% annualised growth.

According to FactSet, experts had forecast the company to post £1.09 billion of revenue in the first quarter. Their estimate for adjusted per-share earnings stood at a lower 96 pence per share. In separate news from the United States, the American multinational technology company, Garmin Ltd. also reported its fourth-quarter financial results on Wednesday.

Analog Devices valued its free cash flow at £260.44 million on Wednesday as compared to a sharply higher £1.38 billion in the comparable quarter of last year. FactSet Consensus for its free cash flow was for £356.82 million.

Analog Devices declares 49.78 pence per share of quarterly dividend

The semiconductor company declared 49.78 pence per share of quarterly dividend on Wednesday versus 44.73 pence per share last year. CEO Vincent Roche commented on the earnings report on Wednesday and said:

“While the economic backdrop remains uncertain, we are confident that a broad-based recovery is underway given continued momentum in ADI’s bookings and lean inventories across the industry.”

For the fiscal second quarter, Analog Devices now forecasts roughly £1.04 of adjusted per-share earnings that matches the FactSet Consensus. At the time of writing, the Norwood-based company is valued at £42.77 billion and has a price to earnings ratio of 48.90.

The post Analog Devices’ beats Wall Street estimates in the fiscal first quarter appeared first on Invezz.



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