Analog Devices, Inc. ADI posted better-than-expected second-quarter financial results on Wednesday.

The company's revenue declined 34% year-on-year to $2.16 billion, beating the analyst consensus estimate of $2.11 billion. Adjusted EPS of $1.40 beat the analyst consensus estimate of $1.26, according to data from Benzinga Pro.

The adjusted gross margin declined by 700 bps to 66.7% as lower revenue weighed on the profits. The adjusted operating margin fell by 1,220 bps to 39.0%.

Vincent Roche, CEO and Chair, said, "We believe inventory rationalization across our broad customer base is stabilizing, clearing a path for us to return to sequential growth in the third quarter. This, coupled with improving new orders, gives us optimism that we are at the beginning of a cyclical recovery."

Analog Devices said it expects third-quarter revenue of $2.27 billion, +/- $100 million, versus the consensus of $2.16 billion. The company projects adjusted EPS of $1.50, +/-$0.10, against the consensus of $1.34.

Analog Devices shares gained 10.9% to close at $240.16 on Wednesday.

These analysts made changes to their price targets on Analog Devices after the company reported quarterly results.

• B of A Securities boosted the price target on Analog Devices from $225 to $260. B of A Securities analyst Vivek Arya maintained a Buy rating.
• Keybanc increased Analog Devices price target from $230 to $285. Keybanc analyst John Vinh maintained an Overweight rating.
• Needham analyst Quinn Bolton, meanwhile, reiterated Analog Devices with a Hold.

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