Analog Devices stock slides as earnings fall short and company says it faces ‘near-term turbulence.’

Analog Devices Inc. stock
ADI,
-0.32%
was down nearly 8% in premarket trades Wednesday after the chip maker’s adjusted third-quarter profit missed Wall Street estimates. Analog Devices said its profit for the three months ended July 29 rose 4% to $929 million, or $1.74 a share, from $893 million, or $1.44 a share in the year-ago period. Analog Devices said its third-quarter adjusted profit totaled $2.49 a share, while analysts expected earnings of $2.52 a share, according to FactSet data. The company’s revenue fell 1% to $3.08 billion, slightly short of the $3.1 billion analyst estimate. Chief executive Vincent Roche said the company faced a challenging operating environment but its results were within its expectations. He warned that the company faces “near-term turbulence” and that “customer inventory adjustments we mentioned last quarter have accelerated as economic conditions deteriorate and our lead times continue to improve.” Analog Devices remains optimistic about its long-term outlook, he said.