Shares of Analog Devices (ADI) - Get Report surged Wednesday after the chipmaker's quarterly earnings edged past analysts' estimates amid signs demand may be on the upswing after a tough 2019 for the semiconductor industry.
The stock jumped 5.09% to $124.60 a share in premarket trading after the Norwood, Mass.-based chipmaker posted adjusted earnings of $1.03 a share for its fiscal first quarter.
While that was down from $1.33 a share during the same period last year, Analog Devices' first-quarter adjusted earnings of $1.03 a share beat estimates of $1.
Revenue at $1.3 billion came in slightly below expectations after falling 15.6% from the same quarter a year ago when sales rang in at $1.54 billion.
After weathering a brutal 2019 that saw global revenue for the semiconductor industry plunge by nearly 12%, Vincent Roche, Analog Devices CEO and president, now sees signs of stabilization and even improvement in revenue heading into the company's fiscal second quarter.
"Encouragingly, demand across our end markets has stabilized and is beginning to show signs of improvement," Roche said in a tatement.
Analog Devices also announced Wednesday it has hiked its quarterly dividend by 15%, "reflecting the stability of our cash flows and our optimism regarding ADI's future," Roche said.
For the second quarter, Analog Devices is forecasting revenue of $1.35 billion, a bit below analysts' estimates of $1.38 billion and reduced by $70 million to account for a reduction in sales due to the impact of the coronavirus in China.