Analog Devices' per-share profit of USD 1.67 beat estimates of USD 1.64, while its revenue of USD 2.44 billion topped estimates of USD 2.41 billion. Chipmaker Analog Devices topped analysts' estimates for fourth-quarter revenue and profit on Tuesday, helped by strong demand for its semiconductors used in consumer electronics and a recovery in orders from the auto industry.
Shares of the Wilmington, Massachusetts-based company rose 7% in premarket trading.
Demand for consumer electronics has recovered from a post-pandemic lull, while trends in the auto segment are also improving.
The auto industry had been grappling with an inventory glut due to sluggish demand, translating to lower production and fewer orders for semiconductors, which hurt business at Analog in the past few quarters.
The auto segment accounts for 29% of the company's business, and the consumer unit, about 16%.
"After a brief decline in overall bookings during our third quarter, orders picked up steadily throughout the fourth quarter, particularly in the automotive end market," CFO Richard Puccio said.
Revenue at Analog Devices' consumer segment jumped 31% to USD 379.7 million in the quarter ended November 2, above analysts' average estimate of USD 346.6 million, according to data compiled by LSEG.
Its auto segment revenue fell 2% to USD 717 million, but beat analysts' average estimate of USD 653.8 million.
Analog Devices' per-share profit of USD 1.67 beat estimates of USD 1.64, while its revenue of USD 2.44 billion topped estimates of USD 2.41 billion.
Rival Texas Instruments also beat third-quarter profit estimates last month, helped by a recovery in orders partly due to improving demand from China's auto market.
For the first quarter of 2025, Analog Devices projected revenue of USD 2.35 billion, plus or minus USD 100 million, in line with estimates.
It also forecast adjusted per-share earnings of USD 1.53 at the midpoint, which was below Wall Street estimates of USD 1.56.
