By Benjamin Pimentel
Shares of Analog Devices Inc. (ADI) jumped more than 15% in
morning trading Wednesday, one day after the chipmaker reassured
investors by posting profit and revenue declines that were less
severe than Wall Street had projected.
Norwood, Mass.-based ADI also drew some analyst upgrades after
reporting results late Tuesday.
In Wednesday morning trading the stock was up $3.16 to $23.74 on
volume of more than 11 million shares.
Caris & Co. raised its rating for ADI to a buy, saying,
"Positives we have expected are coming sooner and more
significantly to ADI, contributing to a strong fiscal second
quarter 2009 beat down the income statement and a positive round of
Street estimate changes."
Deutsche Bank also upgraded the stock to buy from a hold, noting
that the company's revenue of $475 million was "significantly
better than guidance of down 5% to 15% quarter-on-quarter."
The company said fiscal second-quarter net income fell to $51.8
million, or 18 cents a share, versus net income of $133.1 million,
or 45 cents a share, in the year-earlier period.
ADI said revenue decreased to $474.7 million from $649.3
million. Analysts had forecast earnings of 9 cents a share on
revenue of $428.3 million, according to a FactSet Research
survey.
Analog Devices said it expects third-quarter adjusted earnings
of 17 cents to 19 cents a share, with revenue projected to be flat
compared with the second quarter.
-Benjamin Pimentel; 415-439-6400; AskNewswires@dowjones.com