Analog Devices Shares Fall 7% Amid Soft Sales, Demand Warning

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 [e-mail]

(END) Dow Jones Newswires

August 23, 2023 07:58 ET (11:58 GMT)

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