Integrated Circuit (IC) Developer Analog Devices Inc. (NYSE: ADI) During the tech bear market, stocks only fell (-11%).economic slowdown supply chain Disrupted and declining PC demand is the perfect storm for deeper sales in the industry.Demand remains strong, especially in car departments and automation, electrificationand advanced connectivityThat being said, ADI’s second quarter fiscal 2022 revenue grew substantially, with revenue up nearly 79% year over year, with double-digit growth across all B2B markets.although supply chain Challenge, the company achieved unprecedented growth and record revenue for the fifth consecutive quarter. This acceleration is expected to continue as the company also raised its guidance for the third quarter of 2022.Its Mixed-Signal and Product Portfolio Accelerates the Intelligent Edge digital transformation and Digitizing Across multiple industries, from telecommunications as a leader in the 5G radio signal chain to leading electric car (EV) battery management systems, which dominate the field of medical imaging. The stock trades at just 16.8 times forward earnings and a P/E ratio of 1.98% dividend yield.Cautious Investor Seeking Risk Exposure chip game Companies still in high growth mode in the intelligent edge ICT revolution can watch for an opportunistic pullback in Analog Devices stock.
Fiscal 2022 Second Quarter Earnings Release
On May 19, 2022, Analog Devices reported results for the second quarter of fiscal 2021 for the quarter ended April 2022. The company reported diluted earnings per share (EPS) of $2.40, beating analysts’ consensus estimate of $2.11 by $0.29. Revenue rose 78.9% year over year to $2.97 billion, beating analysts’ consensus estimate of $2.84 billion. The company had operating cash flow of $3.65 billion and free cash flow of $3.20 billion, or 33% of revenue. The company returned $1.17 billion to shareholders, including $776 million in share repurchases and $398 million in dividends. Vincent Roche, CEO of Analog Devices, commented, “ADI’s fifth consecutive quarter of record revenue illustrates the unprecedented demand for our technology and our increased demand against a challenging supply backdrop. The ability to produce. Top-line strength combined with successful synergistic execution resulted in new highs in adjusted gross margin, operating margin and EPS. Despite increased geopolitical uncertainty and continued supply chain disruption, we Entering the second half of the year from a strong position with increased capacity and continued booking momentum.
The ADI provider’s upside EPS guidance for fiscal 2022 third-quarter EPS was in the range of $2.32 to $2.52, compared with the consensus analyst estimate of $2.17. The company expects revenue in the third quarter of fiscal 2022 to be between $2.95 billion and $3.15 billion, compared with analysts’ estimates of $2.89.
Conference Call Takeaway
Chief executive Roche said the company was in a significant position driven by “insatiable demand”, as evidenced by its strong bookings, record backlog and continued capacity expansion. Companies are riding the nascent intelligent edge revolution, the next wave of ICT. CEO Roche elaborated: “It will be characterized by ubiquitous sensing, hyperscale computing and ubiquitous connectivity, driving processing and intelligence closer to the edge. Semiconductors are the cornerstone of the next wave And ADI, the birthplace of data, is at the center of this revolution.” As a leader, the company has the industry’s highest-performance analog, mixed-signal and power product portfolio. Its technologies continue to drive next-generation applications in industries such as transportation, energy, manufacturing, telecommunications and healthcare. He expects the adoption of Intelligent Edge and its revenue strategy to lift the growth curve from 5% to 7% to 10%. The company shipped 75,000 product SKUs to more than 125,000 customers. An example of diversification is that 80% of its revenue comes from products that alone account for only 0.1% of total revenue. Its products have a lifespan of more than ten years and are developed through a hybrid manufacturing strategy that supports the technology and packaging required for 7nm to 7micron solutions.
ADI Opportunity Pullback Level
use Rifle Chart Weekly and daily time frames provide a precise view of the competitive environment for ADI stock.Weekly Rifle Chart Forms Double Bottom Above $144.43 Fibonacci (fib) levels. The weekly uptrend was abruptly rejected by the weekly 50-period moving average (MA) at $167.02. Shares plummeted below the weekly 5-period moving average at $162.18 and the weekly 15-period moving average at $159.39, causing the stochastic advance to stall below the 70 band.The drop also sent stocks crashing throughout the week Market Structure Low (MSL) Buy trigger at $164.92. The daily rifle chart breaks down as the falling 5-period moving average at $163.15 crosses the 15-period moving average at $164.21 and the daily 50-period moving average at $160.18. The daily lower Bollinger Band (BB) is $154.35 and the weekly lower BB is $146.83. The daily stochastic formed a small inverse puppy dip at the 80 band.Cautious investors can watch for opportunistic retracement levels at the Fibonacci levels of $154.69, $152.31, $146.22, $144.43, $137.54, $136.19, and $132.38. The upside trajectory ranges from $167.08 to $178.13.