Shares of Analog Devices Inc. (ADI) dropped 2.8% in premarket trading Wednesday, after the chip maker beat fiscal first-quarter profit and revenue expectations but missed free cash flow forecasts, while it raised its dividend by 11%. Net income for the quarter to Jan. 30 rose to $388.5 million, or $1.04 a share, from $203.9 million, or 55 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share grew to $1.44 from $1.03, above the FactSet consensus of $1.33. Revenue rose 20% to $1.56 billion, topping the FactSet consensus of $1.51 billion. Free cash flow rose to $361 million, or 23% of revenue, from $295 million, or 23% of revenue, but missed the FactSet consensus of $494.6 million. Separately, the company raised its quarterly dividend to 69 cents a share from 62 cents, with the new dividend payable March 9 to shareholders of record on Feb. 26. "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," said Chief Executive Vincent Roche. The company expects second-quarter adjusted EPS of $1.44, plus or minus 8 cents, in line with the FactSet consensus is $1.44. The stock, which closed at a record on Friday, has rallied 18.1% over the past three months through Tuesday, while the PLHX Semiconductor Index has run up 27.1% and the S&P 500 has gained 9.0%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 17, 2021 11:54 ET (16:54 GMT)
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