Boston, MA 05/27/2014 (wallstreetpr) – Analog Devices, Inc. (NASDAQ:ADI) expects the positive performance, noted in the past two quarters, to dominate the balance of its fiscal 2014. The company expects revenue growth in its 3Q coming up in August.
For the 3Q, the company expects revenue to increase up to 5 percent sequentially. And earnings are expected to come in between 60 and 64 cents for the quarter.
The optimism in the company is not without reason. Analog Devices, Inc. (NASDAQ:ADI) recently posted 2Q results that exceeded the expectations of most analysts. The company’s 2Q revenue touched $695 million, suggesting an increase of 5 percent on a year-over-year basis and 11 percent on a sequential basis. The quarter saw a net income coming in at $187.4 million. That compared with a net income of $164.5 million in 2Q2013 and a net income of $152.6 million in 1Q2014. The management guided 2Q revenue between $660 and $680 million.
As for the earnings per share, 2Q EPS touched 59 cents, beating the consensus EPS estimate of 56 cents.
The latest quarter was marked by widespread improvements across key market sectors served by the company. Performance improvements were noted in the automotive, industrial and communications sectors.
Analog Devices, Inc. (NASDAQ:ADI) reported sales in the industrial sector grew 5 percent from the same period in the previous year and 13 percent from the previous quarter. Overall, the industrial sector contributed 47 percent of the total 2Q sales. The improvement in the sector was widespread in Europe and North America markets.
The automotive sector jumped 10 percent on a year-over-year basis and 9 percent on a sequential basis. The improvement in the segment was supported by strong performance in the U.S. and China. The automotive segment contributed 19 percent of the 2Q sales.
The communications segment was not a disappointment. The sector grew 25 percent from the same period a year ago and 11 percent on a sequential basis. And at the end of the day the segment contributed 23 percent of 2Q sales.
Analog Devices, Inc. (NASDAQ:ADI) declared a cash dividend of 37 cents per share payable on June 10 to shareholders of record as of May 30.