Analog Devices leads semis higher ahead of key economic reports
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Analog Devices (NASDAQ:ADI) shares led the semiconductor industry higher on Tuesday ahead of several key economic reports to be released in a holiday-shortened week.
Led by CEO Vincent Roche, Analog Devices (ADI) shares rose more than 5.5% to close at $168.41 after the analog circuit provider posted fourth-quarter results and guidance that topped expectations. Following the results, investment firm Credit Suisse wondered if the company was "largely escaping" the downturn impacting the rest of the industry or if it had not been impacted by it yet.
"Since we have never seen a cycle in which industrial/analog suppliers have avoided a downturn, weâre assuming the latter," analyst Chris Caso wrote in a note to clients.
For the period ending October 29, Analog Devices (ADI) said it earned an adjusted $2.73 per share on $3.25B in revenue, up 38.8% year-over-year. Analysts were expecting Analog Devices (ADI) to earn $2.59 per share and $3.16B in revenue.
Looking ahead, Caso said the company's first-quarter guidance implied a growth rate of 17% year-over-year, while noting more color is needed on supply and demand going into the next fiscal year.
For the first-quarter, Analog Devices (ADI) said it expects revenue to be between $3.05B and $3.25B, topping estimates of $3.04B. It also expects operating margins to be 33.4%, plus or minus 130 basis points, while adjusted operating margins are forecast to be between 49.3% and 50.7%.
Adjusted earnings per share are expected to be between $2.50 and $2.70 per share, topping estimates of $2.41 per share.
Competitor Texas Instruments (NASDAQ:TXN) gained nearly 3% to close at $177.72 on Tuesday following the results. 
Nvidia (NVDA) shares gained more than 4.5% on Tuesday, while Advanced Micro Devices (AMD) and Intel (INTC) gained 3.5% and 3%, respectively.
Other chip stocks also rose in mid-day trading on Tuesday, including NXP Semiconductor (NXPI), Qualcomm (QCOM), Broadcom (AVGO) and Micron Technology (MU), all of which gained 1% or more.
On Wednesday, a number of key economic reports will be released as a result of the holiday-shortened trading week. These include October's durable goods figures, initial and continuing jobless claims, a key reading from the University of Michigan on consumer sentiment and inflation, as well as the minutes from the most recent Federal Open Market Committee meeting, among others.
Last week, Analog Devices (ADI) and Advanced Micro Devices (AMD) announced they had resolved all ongoing patent litigations on mutually agreed terms.