May 20 - Analog Devices on Wednesday projected third-quarter revenue above analyst expectations, signaling continued strengthening in demand for its power-management chips and sensor components amid increased investment in AI infrastructure.
The Wilmington, Massachusetts-based semiconductor maker provided a revenue outlook for the third quarter of $3.9 billion, plus or minus $100 million, a level that exceeds analysts' average estimate of $3.62 billion based on data compiled by LSEG.
The company reported second-quarter revenue of $3.62 billion, which topped consensus estimates of $3.51 billion. On an adjusted basis, Analog Devices posted earnings per share of $3.09 for the second quarter, above the $2.90 analysts had forecast.
Management pointed to broad-based strength across business-to-business end markets. "We continued to see growing demand in the second quarter with record bookings across our B2B markets of Industrial, Automotive, and Communications," CFO Richard Puccio said in a statement.
Alongside its revenue projection, Analog Devices issued third-quarter adjusted earnings guidance of $3.30 per share, plus or minus $0.15. That compares with street estimates of $3.00 per share.
In a strategic move to expand its capabilities in AI-focused power management, the company announced on Tuesday that it would acquire Empower Semiconductor for about $1.5 billion in cash. The acquisition is positioned to broaden Analog Devices' product set for applications that benefit from higher processing speeds and more complex data flows, including data centers and automotive systems.
Market reaction has reflected the company's stronger-than-expected performance and forward guidance. Shares of Analog Devices have climbed roughly 53% so far this year. On Wednesday, the stock was largely unchanged in volatile premarket trading.
The guidance ranges for both revenue and adjusted EPS - expressed as plus or minus amounts around the midpoint - indicate that management is providing a degree of caution about near-term variability while still forecasting growth above consensus. The company highlighted sustained demand across data-center and automotive applications, where greater processing requirements drive the need for more advanced power-management and sensor components.
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