Analog Devices (NASDAQ:) Reports better-than-expected Q2 Results and a positive outlook for Q3.

The adjusted Q2 EPS was $2.40. That’s an increase from the $1.54 reported in the prior year period. It also surpasses the consensus estimates at $2.11 per share. Revenue reached $2.97 Billion, exceeding the analyst consensus of $2.84 Billion.

The industrial revenue was $1.5billion, while analyst were hoping for $1.41billion. ADI posted a Q2 adjusted margin of 74.2%. This is higher than the 72.1% estimate. In the same period, the adjusted operating margin was 50.3%, which is higher than the 46.95% expected.

Analog Devices anticipates an adjusted earnings per share of between $2.32 and $2.52 for Q3, which is higher than the consensus analyst estimate of $2.17 per shares. In the third quarter of 2018, revenue will be in the range between $2.95 and $3.15 trillion, also exceeding the consensus estimate of $2.89.

It also stated that it anticipates continued growth in capacity and booking momentum.

Vital Knowledge analysts weighed in to say that “there isn’t anything to complain about” in ADI’s earnings report given “huge upside” on margins.

ADI shares were down 1% during the open.

By Senad Karaahmetovic