There was ample investor enthusiasm for semiconductor stocks to start the year, but that love has cooled a bit lately. While Analog Devices' (NYSE:ADI) slightly cautious guidance on the next quarter may spook some investors, there's a more important story to keep in mind. Analog Devices has shown remarkable margin preservation through this latest downturn, and the company may be in place to deliver some truly incredible gross margins once orders and utilizations have come back up to speed.
A Somewhat Wobbly Quarter
Analog Devices delivered results around the low end of its prior guidance range. Revenue dropped 10% on a sequential basis and a similar amount on a year-over-year basis. Consumer spending was especially weak (down 21%) and wireless was quite soft as well (down 13%). While industrial was still negative (down 3%), auto was positive (up 6%).
Follow this link to the full piece:
http://stocks.investopedia.com/stock-analysis/2012/Analog-Devices-Gearing-Up-For-The-Rebound-ADI-LLTC-TXN-MCHP0227.aspx
No comments:
Post a Comment