Analog Devices Gears Up to Report Q1 Earnings: What to Expect?

Analog Devices, Inc. ADI is set to report first-quarter fiscal 2025 results on Feb. 19.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Analog Devices expects revenues of $2.35 billion (+/- $100 million). The Zacks Consensus Estimate is pegged at $2.36 billion, indicating a decline of 6.8% from the year-ago quarter’s figure.ADI anticipates adjusted earnings per share of $1.53 (+/- $0.10). The consensus mark for earnings is pinned at $1.54 per share, indicating an 11% fall from the prior-year quarter’s figure. The estimate has remained unchanged over the past 60 days.Analog Devices’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.9%.Analog Devices, Inc. Price and EPS Surprise Analog Devices, Inc. price-eps-surprise | Analog Devices, Inc. QuoteFactors to Influence ADI’s Q1 ResultsAnalog Devices’ first-quarter performance is likely to be negatively impacted by broad-based inventory digestion and sluggish demand across key markets. The company expects revenues from Industrial, Automotive and Communications end markets to decline by low-single digits sequentially.The Industrial segment, ADI’s largest revenue contributor, has been in decline due to prolonged inventory digestion. Also, Industrial customers continue to cut back on capital expenditures amid macro uncertainty. The trend is likely to have continued in the first quarter. Our model estimate for Industrial revenues is currently pegged at $1.02 billion.Broad-based inventory digestion and production headwinds at original equipment manufacturers are likely to have hurt Automotive end-market sales performance in the first quarter. Shift away from 5G infrastructure spending by telecom operators is expected to have hurt the company’s Communications business segment’s first-quarter revenue performance. Our model estimates for Automotive and Communications end market revenues are pinned at $744.9 million and $273.3 million, respectively.For the first quarter, Analog Devices expects revenues from the Consumer end market to decline 15% sequentially. While ADI’s consumer segment grew 31% year over year in the last reported quarter, this was driven primarily by a one-time rebound in premium handsets and gaming applications. The broader consumer electronics market remains weak. Our model estimate for the Consumer end-market revenues is pegged at $309.7 million.Macroeconomic challenges, including the protracted inflationary conditions and still-high interest rates, are likely to have posed challenges for the company in the quarter being reviewed. Escalating tensions between the United States and China have remained major concerns. Additionally, increasing investment in research & development to drive innovation is likely to have weighed on the bottom-line results.Earnings Whispers for Analog DevicesOur proven model does not conclusively predict an earnings beat for Analog Devices this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.Analog Devices carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Stocks With the Favorable CombinationHere are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Autohome ATHM has an Earnings ESP of +7.27% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Autohome’s fourth-quarter earnings is pegged at 55 cents per share, revised downward by 2 cents over the past 30 days, indicating a decline of 5.2% from the year-ago quarter’s reported figure. ATHM shares have risen 10.8% over the past year.Sabre SABR has an Earnings ESP of +3.45% and carries a Zacks Rank #3 at present.It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Sabre’s fourth-quarter bottom line is pegged at a loss of 7 cents per share, unchanged over the past 60 days. The consensus mark indicates a narrower loss than 12 cents reported in the year-ago quarter. SABR shares have tanked 19.9% over the past year.NCR Voyix VYX has an Earnings ESP of +142.86% and carries a Zacks Rank #3 at present.It is set to report fourth-quarter 2024 results on Feb. 27. The Zacks Consensus Estimate for NCR Voyix’s fourth-quarter earnings is pegged at 7 cents per share, revised upward from a loss of 5 cents expected 30 days ago. VYX shares have plunged 19.3% over the past year.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Analog Devices, Inc. (ADI): Free Stock Analysis Report Sabre Corporation (SABR): Free Stock Analysis Report Autohome Inc. (ATHM): Free Stock Analysis Report NCR Voyix Corporation (VYX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks