Analog Devices Inc. (ADI.O) announced that a volatile economy will hurt its third-quarter earnings, sending its shares down more than 5% in premarket trade.
According to Refinitiv data, the company expected third-quarter revenue of $3.10 billion, plus or minus $100 million.
Analog Devices forecasts current-quarter adjusted profit of $2.52 per share, plus or minus 10 cents, behind predictions of $2.65.
The semiconductor sector is battling to recover from a recession that has led to inventory buildup, as shown by Texas Instruments Inc (TXN.O) last month.
“Looking to the second half, we expect revenue to moderate given the continued economic uncertainty and normalizing supply chains,” Analog Devices CEO Vincent Roche said on Wednesday.
Industrial and automotive demand boosted second-quarter revenue by 10% to $3.26 billion, exceeding projections.
Industrial sales jumped 16%, while automobile revenue rose 24%.
In May, the business announced a 630 million euro ($693.50 million) investment in a new research and development and manufacturing unit in Ireland to increase its European production capacity.
Last week, Analog Devices said Prashanth Mahendra-Rajah would leave as finance head.
Wednesday’s shares were down 5.5% at $177.55.
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