(Reuters) – Analog Devices topped first-quarter Wall Street expectations for revenue and profit on Wednesday, driven by a recovery in chip demand, particularly in the consumer segment, sending its shares up 5% in premarket trading.
The company provides semiconductors to a variety of industries, including aerospace, automotive, communications, digital healthcare and industrial automation.
Wilmington, Massachusetts-based Analog Devices’ consumer segment revenue rose 19% to $322.9 million, compared with a year earlier.
The demand in consumer electronics was driven by adoption of AI-driven devices, premium smartphones and smart home products.
The company’s first-quarter revenue stood at $2.4 billion, beating analysts’ estimate of $2.36 billion, according to data compiled by LSEG.
Bookings continued to show gradual improvement during the first quarter with strength in industrial and automotive, positioning the company to grow in the second quarter, Chief Executive Vincent Roche said in a statement.
The company expects second-quarter revenue of $2.50 billion, plus or minus $100 million, compared to estimates of $2.46 billion.
The chipmaker expects adjusted earnings per share of $1.68, plus or minus 10 cents, in the current quarter, compared with estimates of $1.66.
(Reporting by Priyanka.G in Bengaluru; Editing by Maju Samuel)
