Analog Devices And Dine Brands: Growth & Income Buys

Video Length: 00:04:01

In this week’s video I discuss two companies that recently reported better than expected earnings results, and that have continued upside going into the next quarter. They are Analog Devices (ADI - Free Report) , and Dine Brands Global (DIN - Free Report) .

Analog Devices (ADI - Free Report) is a world leader in the design, manufacture and marketing of a broad portfolio of high performance analog, mixed-signal, and digital signal processing (DSP) integrated circuits (ICs) used in virtually all types of electronic equipment. Since their inception in 1965, they have focused on solving the engineering challenges associated with signal processing in electronic equipment. Used by over 100,000 customers worldwide, their signal processing products play a fundamental role in converting, conditioning, and processing real-world phenomena such as temperature, pressure, sound, light, speed, and motion into electrical signals to be used in a wide array of electronic devices.

ADI announced earnings on February 28th, where they easily beat both the Zacks consensus earnings and revenue estimates for the 14th consecutive quarter.On a year over year basis, the company posted +51.1% earnings growth and +54.4% revenue growth.During the quarter the company saw continued strong demand for analog semiconductors which helped all segments post revenues above expectations. Further, the Linear Technology acquisition in March of 2017 has helped reduce overall costs, and aided the bottom line results during the quarter.

Due to the continued success in the semiconductor sector, and the strong outlook for the sector going forward, management gave better than expected guidance for Q2 18; they now expect revenues to come in between $1.43-1.51 billion, above the previous expectation of $1.43 billion, and EPS to be between $1.30-1.44, ahead of the previous expectation of $1.24. 

To add to the impressive earnings report, the Board of Directors approved a +7% increase in its quarterly dividend bringing the quarterly payment to $0.48, or $1.92 on an annual basis for an annual dividend yield of +2.1%. 

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