Analog Devices CEO says 'we are well positioned' after Q1 earnings

Analog Devices Inc (NASDAQ: ADI) is trading down in premarket on Wednesday even though it came in slightly above Street estimates in its fiscal first quarter.

Why is Analog Devices stock down today?

Investors are concerned also because the management issued muted guidance for the future. Analog Devices now forecasts $1.26 of adjusted per-share earnings on $2.10 billion in revenue.

Analysts, in comparison, were at $1.26 a share and $2.30 billion, respectively. Vincent Roche – the chief executive of Analog Devices said in a press release today:

$ADI expects its operating margin (adjusted) to sit at about 37% in the current quarter. Shares of the semiconductor giant are now up over 20% versus late October.

Analog Devices Q1 earnings snapshot

• Earned $586 million versus the year-ago $1.13 billion
• Per-share earnings also declined from $1.88 to 93 cents
• Adjusted EPS printed at $1.73 as per the earnings report
• Revenue tanked 23% year-over-year to $2.51 billion
• Consensus was $1.71 a share on $2.50 billion revenue

Analog Devices reported $3.2 billion of free cash flow for its recently concluded quarter. CEO Roche also said on Wednesday:

Analog Devices raises dividend

Analog Devices did, however, raised its quarterly dividend by 7.0% to 92 cents a share on Wednesday. According to the chief executive:

Also today, the Nasdaq-listed firm named Richard C. Puccio is new chief financial officer. Wall Street currently has a consensus "overweight" rating on shares of Analog Devices.