Analog Devices' stock has only increased by 12% in 2024, but a turnaround is expected.

From Yahoo Finance: 2024-09-07 11:00:00

Analog Devices (NASDAQ: ADI) is not as popular as some big players in the semiconductor industry, leading to just a 12% increase in shares year to date, despite the sector’s growth. However, recent quarterly results suggest a turnaround is imminent, with offerings across multiple markets. Revenue fell by 25% to $2.31 billion compared to last year, while non-GAAP earnings dropped by 37% to $1.58 per share. The company anticipates revenue of $2.30 to $2.50 billion in the upcoming quarter, showing a potential slowdown in year-over-year decline. CEO Vincent Roche is optimistic about a recovery in end markets.

Although Analog Devices experienced a decline in revenue and earnings in 2024, analysts forecast a rebound in fiscal 2025, with revenue up by 10% to $10.35 billion and earnings increasing by almost 20% to $7.57 per share. While expectations for fiscal 2026 have been toned down, there is potential for growth. The company may see improved financial performance with a revival in end markets. This suggests a possibility of significant gains over the next few years.



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