Analog Devices Shares Fall 7% Amid Soft Sales, Demand Warning
August 23 2023 - 7:13AM
Dow Jones News
By Will Feuer
Shares of Analog Devices fell in premarket trading after the
chipmaker reported a drop in sales for its fiscal third quarter and
warned that demand is softening.
The stock fell 7% to $163.90 in premarket trading. So far this
year, shares were up nearly 8% through Tuesday's close.
The Wilmington, Mass., company reported sales of $3.08 billion
for the three months ended July 29, down 1% from a year ago.
Analysts surveyed by FactSet expected sales of $3.10 billion.
Adjusted earnings came to $2.49 a share, below the $2.52 a share
that analysts expected.
"The customer inventory adjustments we mentioned last quarter
have accelerated as economic conditions deteriorate and our lead
times continue to improve," Chief Executive Vincent Roche said.
Roche said the company has a diverse base of customers and can
weather a period of softer demand.
The company's current-quarter outlook for sales and adjusted
earnings also fell below analysts' expectations, according to
FactSet.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
August 23, 2023 07:58 ET (11:58 GMT)
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