Why Is Analog Devices (ADI) Down 13.1% Since Last Earnings Report?

It has been about a month since the last earnings report for Analog Devices (ADI). Shares have lost about 13.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Analog Devices due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Analog Devices Beats Q3 Earnings & Revenue Estimates

Analog Devices reported third-quarter fiscal 2022 adjusted earnings of $2.52 per share, beating the Zacks Consensus Estimate by 3.7%. The bottom line rose 47% year over year.

Revenues of $3.11 billion surpassed the Zacks Consensus Estimate of $3.06 billion. Also, the top line improved 77% year over year.

The strong performance delivered by Analog Devices across the industrial, automotive, consumer and communications markets drove the top line.

Although the pandemic-led supply challenges remained headwinds to ADI, its high-performance analog, mixed-signal and power portfolio contributed well.

Revenues by End Markets

Industrial: Analog Devices generated revenues of $1.56 billion (accounting for 50% of the total revenues), which grew 55% year over year.

Communications: Revenues from the market were $490.7 million (16% of revenues), increasing 69% year over year.

Automotive: Revenues from the market summed $659.1 million (21% of revenues), up 127% from the year-ago quarters level.