Shares of Analog Devices Inc. ADI were falling about 5% in premarket trading Wednesday after the chip company beat expectations with the results for its latest quarter but fell short with its profit outlook and said revenue could “moderate” in the second half of the year. The company generated fiscal second-quarter net income of $978 million, or $1.92 a share, compared with $783 million, or $1.49 a share, in the year-earlier quarter. On an adjusted basis, ADI earned $2.83 a share, up from $2.40 a share a year before and ahead of the FactSet consensus, which was for $2.75 a share. Revenue rose to $3.26 billion from $2.97 billion, while analysts had been looking for $3.21 billion. For the fiscal third quarter, ADI’s management expects $3.0 billion to $3.2 billion in revenue, whereas the FactSet consensus was for $3.16 billion. Executives also model $2.42 to $2.62 in adjusted earnings per share, below the $2.65 FactSet consensus. “Looking to the second half, we expect revenue to moderate given the continued economic uncertainty and normalizing supply chains,” Chief Executive Vincent Roche said. “However, I am confident in ADI’s ability to navigate short-term business cycles due to the strength and diversity of our franchise, our hybrid manufacturing model, and alignment to secular growth trends.”
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