Analog Devices Reports Strong Q1 Earnings but Forecasts Weaker Q2

The chipmaker's first-quarter earnings exceeded expectations, but it faces challenges from excess supply and uncertain demand in key sectors.

Analog Devices Inc. reported a fiscal first-quarter net income of $462.7 million, with earnings per share of $1.73, surpassing Wall Street expectations.
The company forecasts a weaker second quarter with expected revenue of $2.10 billion, below analysts' average estimate of $2.36 billion, due to excess supply and uncertain demand.
The industrial unit of Analog Devices saw a 31% decline in revenue in the first quarter, while growth in the automotive unit slowed to a near-two year low of 9%.
High interest rates and a reduction in state subsidies for electric vehicles are expected to dampen demand in the automotive sector.
Analog Devices shares have declined nearly 5% since the beginning of the year, underperforming the S&P 500 index.