Overview

• US semiconductor maker's fiscal Q2 revenue rose 37% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q2 grew 67% yr/yr and beat analyst expectations

• Company returned $1.3 bln to shareholders via dividends and share repurchases in Q2

Outlook

• Analog Devices forecasts Q3 revenue of $3.9 bln, +/- $100 mln

• Company expects Q3 reported EPS of $2.60, +/- $0.15 and adjusted EPS of $3.30, +/- $0.15

• Analog Devices sees continued strong growth in Q3, citing positive demand signals and record bookings

Result Drivers

• RECORD DEMAND - Co said record demand across all end markets, led by Industrial and Communications, drove Q2 results

• OPERATIONAL DISCIPLINE - CEO Vincent Roche said results reflected sharp operational discipline in addition to demand strength

• STRONG BOOKINGS - CFO Richard Puccio said record bookings in B2B markets, including Industrial, Automotive, and Communications, signaled continued demand

Company press release: ID:nPn2cxcqNa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$3.62 bln	$3.51 bln (24 Analysts)
Q2 Adjusted EPS	Beat	$3.09	$2.90 (24 Analysts)
Q2 EPS		$2.40
Q2 Adjusted Operating Income	Beat	$1.77 bln	$1.63 bln (22 Analysts)
Q2 Adjusted Operating Margin		49%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Analog Devices Inc is $405.00, about 2.2% below its May 19 closing price of $414.31

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 30 three months ago

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