Semiconductor manufacturer Analog Devices (NASDAQl:ADI) has beaten Wall Street’s expectations for revenue and profit, the company announced on Wednesday, driven by a recovery in chip demand, particularly in the consumer segment.
The company’s shares rose 5% in premarket trading.
Analog Devices provides semiconductors to a variety of industries, such as aerospace, automotive, communications, digital healthcare and industrial automation.
The company’s consumer segment revenue rose 19% to $322.9 million, compared with a year earlier. This was driven by demand in consumer electronics driven by AI, premium smartphones and smart home products.
The company’s first-quarter revenue stood at $2.4 billion, beating analysts’ estimate of $2.36 billion, according to data compiled by LSEG.
Chief Executive Vincent Roche said in a statement that bookings continued to show gradual improvement during the first quarter with strength in industrial and automotive, positioning the company to grow in the second quarter.
The company expects second-quarter revenue of $2.50 billion, plus or minus $100 million, compared to estimates of $2.46 billion.
The chipmaker expects adjusted earnings per share of $1.68, plus or minus 10 cents, in the current quarter, compared with estimates of $1.66.