Analog Devices Is Pulling Back To Support

Asia's Tech News Daily

This Is The Next Buying Opportunity In Analog Devices 

The semiconductor industry is in a boom so it was expected for Analog Devices (NASDAQ: ADI) to provide strong results and outlook. That is why price action surged prior to the release and why now, after the fact, price action is in decline. It is a classic buy-the-rumor-sell-the-news event and one that investors can take advantage of. While the traders are making their short-term gains (or losses), investors can rest assured knowing the outlook for semiconductors is robust and that this pullback in prices will most likely lead to higher prices early in 2022 if not before the end of this year. 

(NASDAQ: ADI), robust quarter, definitely positive, consensus of $187.70, Entrepreneur Index

Depositphotos.com contributor/Depositphotos.com – MarketBeat

A Record Quarter For Analog Devices 

Analog Devices had a very robust quarter with revenue up 52.9% versus last year. The $2.34 billion also beat the consensus by 130 basis points and that is saying something. Many other chip companies have already reported this cycle so the analysts have had plenty of time to adjust their expectations. Regardless, strength was driven by the Industrial and Automotive segments and we are not surprised to see that. Chip shortages within the automotive sector alone have it curbing production in wait of chips and parts that require chips. The consumer segment, which was slower to rebound, returned to growth as well. 

Moving down the report there is some mixed news to report. The company experienced significant margin contraction at the gross level but no worse than expected and offset by revenue strength. The gross margin contracted roughly 2000 basis points and the operating margins about 2400 due to increased R&D, marketing, expenses related to the Maxim acquisition, amortization, and the extinguishment of debt. This resulted in GAAP earnings of $0.16 or $1.12 below the Marketbeat.com consensus and adjusted EPS of $1.73 which beats by $0.03. 

The company says backlogs are strong and will continue to drive growth into the coming year. The guidance for FQ1 is in line with that sentiment but a bit mixed in regards to the analyst’s expectations. The analysts are expecting revenue of $2.47 billion and EPS of $1.68 versus the guidance of $2.4 to $2.5 billion and EPS of $1.68 to $1.88. In our view, the revenue guidance is weak and leaves the door open for outperformance on both the top and bottom lines. 

The Analysts Are Pushing Analog Devices Higher 

Only one analyst has come out with commentary since the release of earnings but the trend is definitely positive. The company picked up 4 new analysts since late summer and the consensus price target is moving higher with their inclusion. The most recently initiated coverage is by UBS in October. UBS initiated with a Buy and a price target of $210 compared to the Marketbeat.com consensus of $187.70. The most recent coverage came shortly after the earnings release from BMO which rates the stock at Outperform. BMO raised its price target to $220 marking the Marketbeat.com high price target and implying about 20% of upside. 

The Technical Outlook: Analog Devices Pulls Back To Support 

Shares of Analog Devices hit a fresh all-time high just days before the FQ4 report was released. Price is now pulling back into what looks like a 5% correction but it is too soon to call the bottom. The short-term EMA is 5% below the all-time high and will act as support, the question is if it will hold up and propel prices higher? In our view, the answer is yes, and if not at the EMA then not too much further below it. Not only does Analog Devices offer growth in the high-profile microchip industry but it trades at a relative value to peers in the group and pays a safe and growing 1.5% dividend yield. If not, then there will be a chance to buy this great stock at an even lower level. 

(NASDAQ: ADI), robust quarter, definitely positive, consensus of $187.70, Entrepreneur Index

Analog Devices is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Stocks making the biggest moves midday: Twitter, Moderna, Merck, Tesla and more

Twitter CEO and co-founder Jack Dorsey gestures while interacting with students at the Indian Institute of Technology (IIT) in New Delhi on November 12, 2018.Prakash Singh | AFP | Getty ... Read more »

Markets bounce back from Friday's rout

Markets in Europe and the US bounced back from a bruising end to last week on Monday, however failed to make up all of the ground lost in the panic ... Read more »

Bank of Portugal chief says country must use EU grants, reduce debt

FILE PHOTO: ECB governing council member Mario Centeno speaks during an interview with Reuters, in Lisbon By Sergio Goncalves LISBON (Reuters) – Portugal, which is gearing up for a snap ... Read more »

Markets have got it about right on Omicron so far

Time is needed for informed economic judgments on new Covid development Amateur virology is all the rage in the City. Analysts who would normally be more at home inputting some ... Read more »

Why Digital Marketing Is Just Like Dating

You may think I’m crazy but one of the basics I teach about digital marketing is that it’s just like dating. Actually, marketing in general is like dating, isn’t it? ... Read more »

Cyberpunk maker CD Projekt misses profit expectations

A bird flies in front of the Cd Projekt logo at its headquarters in Warsaw (Reuters) –CD Projekt, the Polish video game maker behind “Cyberpunk 2077“, missed expectations on Monday ... Read more »

U.S. lawmakers ask FAA to detail Boeing 737 MAX oversight

FILE PHOTO: FILE PHOTO: FILE PHOTO: A Boeing 737 MAX airplane lands after a test flight at Boeing Field in Seattle (Reuters) – Three U.S. House Democrats on Monday asked ... Read more »

Exclusive-Ukraine's Naftogaz says Russia-EU gas transit deal may not be renewed

FILE PHOTO: The logo of the Nord Stream 2 gas pipeline project is seen on a pipe at the Chelyabinsk pipe rolling plant in Chelyabinsk, Russia By Susanna Twidale LONDON ... Read more »

‘I'm really sad': Jack Dorsey publishes final email as Twitter CEO

(Getty Images) Twitter CEO Jack Dorsey has published a final email as leader of the company before stepping down, saying that he feels “really sad…yet really happy” about the decision. ... Read more »

Medicare open enrollment ends Dec. 7. Here's why you should review your 2022 coverage if you haven't already

Phynart Studio | E+ | Getty Images You've got about a week left to make sure your 2022 Medicare coverage suits you. The program's fall open enrollment period, which opened ... Read more »

Asda charters cargo ship with festive items amid supply chain crisis

Photograph: Christopher Thomond/The Guardian Ship carrying 350 containers with toys, clothing and decorations is supermarket’s first ever private charter Asda has revealed it chartered its own cargo ship to ensure ... Read more »

Chinese could hack data for future quantum decryption, report warns

‘Threat groups’ could target valuable secrets with aim of unlocking them when computing power allows Chinese hackers could target heavily encrypted datasets such as weapon designs or details of undercover ... Read more »

Eni ready to spend more on nuclear fusion in green drive

FILE PHOTO: Eni‘s logo is seen in front of its headquarters in San Donato Milanese By Stephen Jewkes MILAN (Reuters) – Italian energy company Eni is ready to invest more ... Read more »

The economy is getting back to normal? We don't even know what that looks like any more

Photograph: Luis Ascui/AAP Wednesday’s GDP figures will likely be the second worst ever recorded in Australia, but more than anything they will highlight an economy still massively affected by the ... Read more »

The infrastructure bill cracks down on crypto tax reporting. What investors need to know

Chinnapong | iStock Editorial | Getty Images Cryptocurrency investors may face higher taxes as the infrastructure bill cracks down on future IRS reporting, financial experts say. The $1.2 trillion deal calls for ... Read more »

Keys to leading teams with a hybrid work model

Depositphotos.com Currently, flexibility has become a priority for workers, many do not want to return to the 100% face-to-face way of working, because according to a survey we conducted in ... Read more »

France extends stricter controls on foreign ownership of key firms

FILE PHOTO: French Finance Minister Le Maire and WTO Director-General Okonjo-Iweala meet in Geneva PARIS (Reuters) – France will extend by one year stricter measures on foreign ownership of companies ... Read more »

Why Making Progress Is the Most Powerful Motivator

Long before Festivus and “yada yada” became baked into our cultural lexicon, Jerry Seinfeld was just another comedian, touring the country in hopes of making people laugh. It was during ... Read more »

‘Really good news for pension savers' as new rules come into force

Pension saving will be undertaken by many people planning for retirement, but there could be risks involved. One of these is protecting hard-earned cash from the clutches of scammers, and ... Read more »

What are 'mental triggers' and how to use them to persuade

Have you ever felt that a website traps you from beginning to end, and is actually an advertisement in which, from time to time, you get rushed with that of ... Read more »

Twitter CEO Jack Dorsey steps down, CTO Parag Agrawal tapped to replace him

Twitter’s (TWTR) Jack Dorsey is stepping down as CEO, the company announced Monday. He will be replaced by CTO Parag Agrawal. “I've decided to leave Twitter because I believe the ... Read more »

Matthew McConaughey: Alright, Alright, Alright, I'm Not Running for Texas Governor

Last night, Matthew McConaughey took to social media and delivered what amounted to the most dramatically drawn out non-announcement in modern political history.  In a three-plus-minute address, the Oscar-winning actor ... Read more »

What Apple, Amazon and Kim Kardashian Can Teach You About Innovating Every Day

In the not-too-distant past, innovation was viewed as a glamorous activity primarily left either to disruptive startups and entrepreneurs or to specific departments which were cordoned off from the others within ... Read more »

Europe's energy crisis pushes Gazprom to record profits

Gazprom The Russian state energy empire Gazprom has made record profits on the back of Europe's energy supply crunch, and predicted a lucrative winter as the Continent braces for a ... Read more »

Britain open to law to combat online scams - minister

LONDON (Reuters) – Britain is open to legislating to combat scam adverts online amid a surge in fraud attacks, financial services minister John Glen has told lawmakers. Victims' groups and ... Read more »

Norwegian analyst expects high electricity prices all winter long

People must prepare for the fact that the high electricity prices will last all winter, power analyst Tor Lilleholt says. New price records could be set already this week.  “The ... Read more »

The difference between convincing and inspiring

Depositphotos.com Language is a powerful tool in the construction of human relationships of all kinds, which differentiates us from other species; However, it is our capacity for interpretation that injects ... Read more »

Twitter CEO Jack Dorsey Expected to Step Down, Sources Say

Twitter CEO Jack Dorsey is expected to leave his executive role, sources tell CNBC.  Dorsey is currently the CEO of both Twitter and Square, his digital-payments company.  Twitter stakeholder Elliott ... Read more »

Russia's Gazprom expects 2022 gas prices in Europe no lower than 2021

FILE PHOTO: St. Petersburg International Economic Forum MOSCOW (Reuters) – Russian state gas company Gazprom forecasts that gas prices in Europe next year will be no lower than in 2021, ... Read more »

Jack Dorsey: Who is the Twitter CEO and why might he be resigning?

(AFP via Getty Images) Jack Dorsey became CEO of the social networking site Twitter – initially written “Twittr” – in March 2006. Reports say that the billionaire is set to ... Read more »

Elon Musk Urges Tesla Employees to Stop Rushing Deliveries

Though customers may be well into their holiday season spending habits, Tesla CEO Elon Musk has asked employees to pump the brakes on rushing Q4 orders in order to hit ... Read more »

Jefferies poaches Deutsche Bank bankers to bolster Iberia coverage, source says

FILE PHOTO: The logo of Germany’s Deutsche Bank By Pamela Barbaglia LONDON (Reuters) – U.S. investment bank Jefferies has snapped up Deutsche Bank's M&A head in Iberia, Andres Gutierrez, as ... Read more »

Why the 10-80-10 Rule Is Key To Achieving Success

The 10-80-10 rule is an extension of the Pareto principle that says 80% of productivity/wealth is generated/owned by 20% of the population.[1] This ratio is often observable in various statistics ... Read more »

Exclusive - Greece to borrow 10 to 12 billion euros on bond markets in 2022

FILE PHOTO: A 50 Euro banknote is seen in a picture illustration. By Lefteris Papadimas ATHENS (Reuters) – Greece plans to borrow 10 billion euros ($11.3 billion) to 12 billion ... Read more »

Twitter chief executive Jack Dorsey set to step down, report says

Photograph: Anushree Fadnavis/Reuters Dorsey co-founded site in 2006 and posted world’s first tweet Company not immediately available for comment Twitter co-founder Jack Dorsey is expected to step down from his ... Read more »

Russia fines Google 3 million roubles for not deleting banned content

FILE PHOTO: The logo for Google LLC is seen at their offices in Manhattan, New York City MOSCOW (Reuters) – A Moscow court fined Alphabet Inc.'s Google 3 million roubles ... Read more »

Jack Dorsey: Twitter CEO to resign, reports say

(Independent) Jack Dorsey, Twitter’s chief executive, is to resign, according to a shock new report from CNBC. Twitter’s shares jumped 11 per cent after the unconfirmed reports. CNBC said that ... Read more »

Cyber Monday and Black Friday sales drive shoppers to malls as UK high street suffers

Before the pandemic, footfall in central London rose on Black Friday by 23.7%, compared to the previous week. This year it rose just 2.3%. Photo: Daniel Leal/AFP via Getty The ... Read more »

Japanese knotweed shaves £11.8billion off property values

© Provided by This Is Money MailOnline logo Japanese knotweed is responsible for shaving £11.8billion off the value of Britain’s property market, new research by a removal specialist claims. As ... Read more »

The 50 Richest People in Crypto

Rather than the Musks, Zuckerbergs and Gates Ellisons of the world,  The Crypto Rich List compiled by tradersofcrypto.com, comprises a wide array of players within the cryptocurrency ecosystem. Developers, investors, and founders of trading ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic