Analog Devices rises as investors look past weak Q4 guidance
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Analog Devices (NASDAQ:ADI) shares erased earlier losses and was up around 0.5% trading on Wednesday as the analog semiconductor company reported third-quarter results and issued a weaker-than-expected outlook for the fourth quarter.
Looking ahead, Analog Devices (ADI), which competes with Texas Instruments (TXN) in the automotive and industrial markets, said it expects fourth-quarter sales to be $2.7B, plus or minus $100M, with an operating margin of 26.8%, plus or minus 130 basis points.
It expects adjusted earnings to be $2 per share, plus or minus 10 cents.
Analysts were expecting the company to earn an adjusted $2.40 per share and sales to clock in at $3.02B.
Texas Instruments (TXN) shares fell more than 2% in sympathy following the report.
Analog (ADI) also reported weaker-than-expected third-quarter results, earning $2.49 per share, excluding one-time items as sales dipped 1% year-over-year to $3.08B. 
Analysts were expecting adjusted earnings of $2.52 per share and $3.1B in revenue.
The company also said it returned $1.1B to shareholders in the quarter, including $700M in buybacks and $400M in dividends. 
Analog (ADI) is slated to hold a conference call at 10 a.m. EST to discuss the results.

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