Semiconductor company Analog Devices Inc (ADI), Tuesday reported an increase in third-quarter profit on an eight percent growth in revenue, with earnings coming in line with Wall Street estimates while revenue surpassed expectations.
The company provided an upbeat outlook for the fourth quarter, partly reflecting its June acquisition of Hittite Microwave Corp.
Analog Devices also declared a dividend of $0.37 per share.
CEO Vincent Roche observed, "ADI had another good quarter of revenue growth led by the industrial and communications infrastructure markets."
Analog Devices provides semiconductor solutions for signal processing applications.
Analogy Devices, based in Norwood, Massachusetts, posted third-quarter net earnings of $180.6 million or $0.57 per share, compared with $176.2 million or $0.56 per share last year.
Excluding items, adjusted earnings for the quarter were $0.63 per share. On average, 28 analysts polled by Thomson Reuters estimated earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the third quarter rose 8 percent to $727.8 million from $674.2 million in the prior year. Twenty-five analysts had a consensus revenue estimate of $716.7 million for the quarter.
Among segments, Industrial revenue gained 12 percent from last year, automotive climbed 8 percent and communications rose 19 percent. Consumer segment revenue fell 19 percent.
Gross margin for the quarter climbed 90 basis points from last year to 65.4 percent, while operating margin slid to 27.8 percent from 30.9 percent.
For the fourth quarter, the company expects adjusted earnings of $0.66 to $0.70 per share on revenues of $790 million to $820 million. Analysts currently expect earnings of $0.67 per share on revenues of $761.2 million.
In June, Analog Devices agreed to buy Hittite Microwave Corp (HITT) for an enterprise value of about $2 billion. Hittite makes integrated circuits, modules, subsystems and instrumentation for RF, microwave and millimeter wave application.
ADI closed Tuesday at $52.21, up $0.28 or 0.54%, on a volume of 2.4 million shares on the Nasdaq. In after hours, the stock dropped $0.21 or 0.40%.
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