Skip to Content
Morningstar

Analog Devices Earnings: The Firm Prepares to Brave a Turbulent Economy; Maintain Valuation

An image of an outline of computer over a keyboard.
Securities In This Article
Analog Devices Inc
(ADI)

Wide-moat Analog Devices ADI reported strong fiscal second-quarter results that came in ahead of our expectations but provided weaker-than-expected third-quarter guidance. Its business conditions appear to be reverting to pre-COVID-19 levels, rather than the booming environment of recent quarters amid the global chip shortage. We retain our confidence that Analog can weather any macroeconomic storms that lie ahead. As such, we maintain our $196 fair value estimate. For investors with a long-term perspective, we’re starting to see a rare, attractive margin of safety in shares of this high-quality chipmaker.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

More in Stocks

Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market

Our top industrial picks are Honeywell, UPS, and Huntington Ingalls.
Brian Bernard, CFA, CPA

Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape

Our top picks for this sector include Estee Lauder, WK Kellogg, and Kraft Heinz.
Erin Lash, CFA

33 Undervalued Stocks

Here’s the new list of Morningstar’s top underpriced analyst picks to buy for the third quarter of 2024.
Susan Dziubinski

About the Author

Brian Colello

Strategist
More from Author

Brian Colello, CPA, is an equity strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. In addition to leading Morningstar’s technology sector team, he covers semiconductor and hardware companies. Colello was a senior equity analyst before assuming his current role in 2015.

Before joining Morningstar in 2008, he worked in public accounting for KPMG and served as a manager in corporate finance for BMG Music, a subsidiary of Bertelsmann AG.

Colello holds a bachelor’s degree in accounting from Bucknell University and a master’s degree in business administration from Wake Forest. He is also a Certified Public Accountant.

Sponsor Center