Analog Devices (ADI 89.11, +4.31) has spiked 5.1% after beating second quarter earnings expectations and guiding ahead of market expectations. Today's move puts the stock within 15 points of its all-time high that was recorded in late 2000.
The manufacturer of integrated circuits reported above-consensus second quarter earnings of $1.03 per share on a 41.2% year-over-year spike in revenue to $1.10 billion, which matched expectations.
Gross margin improved to 69.3% from 66.1% in the previous quarter and 65.8% one year ago. Similarly, operating margin improved to 37.9% from 35.0% in the previous quarter and 30.8% one year ago.
Analog Devices President and CEO Vicent Roche said the company was able to exceed its own expectations, thanks in part to relative strength in the industrial end market. The company closed its acquisition of Linear Technology during the quarter, and remains on track to fully integrate the business with its own operations.
Looking at the segment breakdown, Industrial revenue jumped 20.0% year-over-year to $462.91 million. Consumer revenue also increased notably, surging 156.0% year-over-year to $205.44 million. Communications revenue grew 4.0% year-over-year to $181.74 million while Automotive revenue increased 9.0% to $15.42 million. Linear Technology contributed $147.46 million to Analog Devices' revenue.
Analog Devices expects another solid quarter, priming the market for above-consensus third quarter earnings between $1.07 and $1.21 per share on revenue between $1.37 billion and $1.45 billion. Gross margin is expected between 69.0% and 70.0%.