Analog Devices, Inc. (NYSE:ADI) shares fell 6.6% as the semiconductor maker continued to struggle to match industry rival, Nvidia Inc, which reports results after the closing bell Wednesday.
The Wilmington, Massachusetts-based firm reported a 1% dip in sales in the financial third quarter to July 29 to $3.08 billion from $3.11 billion.
Gross margin dipped 190 basis points to 63.8% from 65.7%, but diluted EPS climbed 21% to $1.74 from $1.44.
“In a challenging operating environment, ADI executed well, and delivered third quarter results within our expectations,” Vincent Roche, CEO and chair said.
“However, the customer inventory adjustments we mentioned last quarter have accelerated as economic conditions deteriorate and our lead times continue to improve,” he added.
For the financial fourth quarter, the firm expects revenue of $2.70 billion, plus or minus $100 million, and EPS to be $1.19, give or take $0.10.