Analog Devices fourth-quarter outlook bleak on falling margins
(Reuters) - Microchip maker Analog Devices Inc (ADI.O) reported quarterly profit in line with Wall Street estimates, but forecast a weak fourth quarter as it expects margins to remain depressed.
Analog Devices forecast earnings of between 54 cents and 60 cents per share on revenue of $685 million to $715 million.
Analysts expected it to earn 60 cents per share on revenue of $714.6 million, according to Thomson Reuters I/B/E/S.
The company expects its gross margins in the fourth-quarter to come in at about 65 percent.
In the third quarter, gross margins fell to 65.6 percent from 67.2 percent last year.
Profit fell to $169.7 million, or 56 cents per share, from $219.9 million, or 71 cents per share, last year.
The company, which competes Texas Instruments Inc (TXN.O) and STMielectronics NV (STM.PA), said revenue fell 10 percent to $683 million.
Analysts expected the company to earn 56 cents per share on revenue of $692.1 million.
Shares of the Norwood, Massachusetts-based company were down slightly at $39.96 after the bell on Tuesday. They closed at $40.34 on the Nasdaq.
(Reporting by Shubham Singhal in Bangalore; Editing by Saumyadeb Chakrabarty)