Shares in Analog Devices Inc (NASDAQ:ADI) jumped 6% pre-market on Tuesday as the chipmaker reported earnings that were higher than expected, thanks to a rebound in orders.
A brief decline in bookings during its fiscal third quarter, was followed by orders picking up throughout the fourth quarter, particularly from customers in automotive markets, the company said.
Adjusted earnings per share came in at $1.67, beating the average analyst estimate of $1.64, per FactSet.
Revenues of $2.4 billion were above the mid-point of the company’s previous guidance range and beat the Wall Street consensus.
CEO Vincent Roche said: "While unprecedented customer inventory headwinds drove a historic revenue decline during fiscal 2024, we maintained operating margins north of 40%, which is a testament to our business model's resilience."
Finance chief Richard Puccio added that macro uncertainty "continues to limit the pace of our recovery" but the company is "cautiously optimistic for a strong growth year in fiscal 2025".
For the first quarter of fiscal 2025, revenue is guided to $2.25 to 2.45 billion, and at the midpoint reported EPS is expected be $0.70 to 0.90, with adjusted EPS of $1.43 to 1.63.