WASHINGTON (dpa-AFX) - Chipmaker Analog Devices, Inc. (ADI) said Tuesday after the markets closed that its third quarter profit rose 3.8% from last year, helped mainly by lower income tax expenses even as revenue declined 1.3%.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a slightly downbeat forecast for the current quarter.
'ADI delivered solid results for the third quarter. Compared to the prior quarter, revenue increased by 2% and our operating model produced excellent leverage, driving diluted EPS growth of 10%, excluding special items,' said Vincent Roche, President and CEO of Analog Devices.
'There are signs that a gradual recovery in the macroeconomic environment is underway and we are in a strong position to benefit from the return of capital investments in communications and industrial infrastructure programs,' added Roche.
The company also declared a cash dividend of $0.34 per share, payable on September 11 to all shareholders of record on August 30.
Analog Devices shares are currently losing 1.90% in after hours trading after closing the day's regular trading session at $47.85, up 7 cents. The shares trade in a 52-week range of $37.82 to $50.00.
For the third quarter ended August 3, 2013, the Norwood, Massachusetts-based company reported net income of $176.2 million or $0.56 per share, compared to $169.8 million or $0.56 per share for the year-ago quarter.
Excluding items, adjusted earnings for the latest quarter were $0.57 per share.
On average, 27 analysts polled by Thomson Reuters expected the company to earn $0.54 per share for the third quarter. Analysts' estimates typically exclude special items.
Revenue for the third quarter fell to $674.17 million from $683.03 million in the same quarter last year. Twenty-four analysts had a consensus revenue estimate of $671.79 million for the third quarter.
Looking forward to the fourth quarter, the company forecasts revenue of $675 million to $700 million and earnings of $0.55 to $0.61 per share. Analysts currently expect the company to earn $0.59 per share on revenue of $697.22 million for the fourth quarter.
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