Investing.com -- Shares in Analog Devices (NASDAQ:ADI) popped more than 5% in premarket trading Wednesday after the company reported first-quarter earnings and revenue above analyst expectations, and offered an upbeat second-quarter guidance.
The semiconductor company posted Q1 earnings per share (EPS) of $1.63, topping consensus expectations of $1.54. Revenue fell 4% year-over-year to $2.42 billion, but was still ahead of the estimated $2.36 billion.
Analog Devices reported an adjusted gross margin of 68.8%, ahead of the estimated 67.8%, while its adjusted operating margin stood at 40.5%, slightly above the projected 40.2%.
"ADI delivered first-quarter revenue, profitability, and earnings per share above the midpoint of our outlook, despite the challenging macro and geopolitical backdrop," said Vincent Roche, CEO and Chair of Analog Devices.
"Our recovery is being propelled by improving cyclical dynamics and numerous new wins across our franchise converting to revenue. We remain firmly committed to delivering ever higher levels of value for customers through differentiated innovation and customer experience, coupled with an agile and resilient supply chain."
For the second quarter of 2025, the chipmaker expects EPS of $1.68. plus or minus $0.10, compared to the consensus forecast of $1.66.
Revenue guidance is set at $2.5 billion, plus or minus $100 million, compared to the $2.457 billion projected by analysts.
This content was originally published on Investing.com
