Boston, MA 08/28/2014 (wallstreetpr) – Analog Devices, Inc. (NASDAQ:ADI), a $16 billion chip maker based in Norwood, released its 3Q2014 financial results that smoked consensus estimates. The company also went on to provide a positive outlook for its newly acquired business, Hittite Microwave. The management believes that the combination of ADI and Hittite is a perfect mix that should drive growth in the future, starting in the near future.
Analog Devices’ CEO, Vincent Roche, recently told investors and some analysts that they hope to turn Hittite into a $1 billion business in the near future. He said they liked the position that the business already enjoys in the defense and aerospace segments. He noted that was one area that Hittite likely was more focused than Analog Devices, Inc. (NASDAQ:ADI). Hittite had a global workforce of 506 employees last year, and it had revenue of $274 million in the same period. Analog Devices said the acquisition of Hittite accounted for about $5 million of their third quarter revenue.
3Q earnings and 4Q outlook
In the latest quarter, Analog Devices, Inc. (NASDAQ:ADI) reported revenue of $722.36 million, which was up 7% compared with the same period last year. The revenue also beat estimates as analysts on the average expected revenue of $716.16 million for the quarter. Earnings for the quarter were $0.63 a share, better than the estimated earnings of $0.627 a share.
For the 4Q, revenue is expected in the band of $790 – $820 million, and earnings per share in the range of $0.66-$0.70.
Room for more acquisitions
Having completed the acquisition of Hittite, the management of Analog Devices, Inc. (NASDAQ:ADI) said they still have enough funds to make more acquisitions if a great opportunity presents itself. However, they will not make a ton of acquisitions, but will focus their resources on deals that add value to the shareholders.
Analysts at JPMorgan Chase & Co. (NYSE:JPM) recently upped their target price on the stock of Analog Devices, Inc. (NASDAQ:ADI). They raised their target to $60 from $50 a share.
