Chipmaker Analog Devices, Inc. (ADI) said Tuesday after the markets closed that its second quarter profit rose slightly from last year, helped mainly by lower income tax expenses even as revenue declined 2%.
The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue fell shy of analysts' forecast. At the same time, the company forecast third quarter revenue and earnings below analysts' current consensus estimates.
"We had a solid second quarter led by strong sequential revenue growth from industrial and automotive applications," said Vincent Roche, Analog Devices President and CEO.
"Orders were higher in the second quarter compared to the prior quarter, but customers remain cautious given the uncertain macroeconomic environment. As a result, our outlook for the third quarter is for revenue to be approximately flat to up 4%," added Roche.
Analog Devices shares are currently losing 1.52% in after hours trading after closing the day's regular trading session at $46.56, down 31 cents. The shares trade in a 52-week range of $34.25 to $47.27.
The company also declared a cash dividend of $0.34 per outstanding share of common stock, payable on June 11 to all shareholders of record on May 31.
For the second quarter ended May 4, 2013, the Norwood, Massachusetts-based company reported net income of $164.5 million or $0.52 per share, compared to $162.9 million or $0.53 per share for the year-ago quarter.
Excluding items, adjusted earnings for the latest quarter were also $0.52 per share.
On average, 27 analysts polled by Thomson Reuters expected the company to earn $0.52 per share for the second quarter. Analysts' estimates typically exclude special items.
Revenue for the second quarter fell 2% to $659.25 million from $675.09 million in the same quarter last year. Twenty-four analysts had a consensus revenue estimate of $660.84 million for the second quarter.
Gross margin for the second quarter narrowed to 64.0% from 65.2% a year earlier, while operating margin shrank to 29.0% from 31.5% last year.
Looking forward to the third quarter, the company forecast revenue of $655 million to $685 million and earnings of $0.51 to $0.56 per share. Analysts currently expect the company to earn $0.58 per share on revenue of $688.33 million for the third quarter.
Gross margin for the third quarter is estimated to be about 64.5%.
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