(Reuters) – Analog Devices topped first-quarter Wall Street expectations for revenue and profit on Wednesday, driven by a recovery in chip demand, particularly in the consumer segment, sending its shares up 4%.
The company provides semiconductors to a variety of industries including aerospace, automotive, communications, digital healthcare and industrial automation.
Wilmington, Massachusetts-based Analog Devices’ consumer segment revenue rose 19% to $322.9 million from a year earlier.
The rise in sales was driven by demand for consumer electronics on the back of adoption of AI-driven devices, premium smartphones and smart home products.
The company’s first-quarter revenue stood at $2.4 billion, beating analysts’ estimate of $2.36 billion, according to data compiled by LSEG.
Bookings continued to show gradual improvement during the first quarter with strength in industrial and automotive, positioning the company to grow in the second quarter, Chief Executive Vincent Roche said in a statement.
The company is positioned to benefit from automation growth, including robotics and smart instruments, while the rising adoption of hybrid and electric vehicles is also expected to drive demand for analog chips, said Logan Purk, tech analyst at Edward Jones.
The company expects second-quarter revenue of $2.50 billion, plus or minus $100 million, compared to estimates of $2.46 billion.
The chipmaker expects adjusted earnings per share of $1.68, plus or minus 10 cents, in the current quarter, compared with estimates of $1.66.
(Reporting by Priyanka.G in Bengaluru; Editing by Maju Samuel)
