Analog Devices Gains as Earnings Top Analysts' Estimatesby
Analog Devices Inc. gained the most in almost six weeks after the chipmaker reported sales and profit that exceeded analysts’ estimates, helped by demand for consumer device components.
Fourth-quarter net income was $96.3 million, or 30 cents a share, compared with $108.7 million, or 34 cents, a year earlier, the Norwood, Massachusetts-based company said early Tuesday. Sales were $978.7 million, a 20 percent gain from a year earlier. Analysts had predicted a profit of 7 cents a share on sales of $910 million according to the average of estimates compiled by Bloomberg.
The company, which counts Apple Inc. as one of its biggest customers according to Bloomberg supply chain analysis, makes analog chips that convert real-world things like touch and sound into electronic signals in devices ranging from mobile phones to aircraft.
Revenue in the current period will be $805 million to $855 million, delivering earnings per share of 59 to 67 cents, Analog Devices said. That compares with average analyst predictions of 66 cents on $836 million of sales.
The stock gained 6.4 percent to $60.42 at the close in New York, the biggest single-day jump since Oct. 14, leaving shares up 8.8 percent this year.