Analog Devices forecast higher revenue than expected for the January quarter, sending the stock higher in premarket trading.

The semiconductor firm (ticker: ADI) reported adjusted earnings per share of $2.73 for the October quarter, compared with the consensus estimate of $2.58 among Wall Street analysts tracked by FactSet. Revenue came in at $3.25 billion, which was above analysts' expectations of $3.15 billion.

Management's financial outlook was upbeat as well. Analog forecast a range of potential revenue for the current quarter with a midpoint of $3.15 billion, compared with the consensus view that revenue will be $3.04 billion.

"While the economic backdrop continues to cause demand uncertainty, we are well-positioned in the near-term with stabilizing orders, a strong backlog, and continued design win momentum," CEO Vincent Roche said in the news release.

Analog Devices shares gained 3.9% to $165.50 in premarket trading.

The company sells a broad-based portfolio of chips that go into products in nearly every sector of the economy. The company has more than 125,000 customers and is considered a bellwether for the technology industry and the economy.

Analog Devices shares have declined by 9% this year through Monday, versus the 32% drop in the iShares Semiconductor ETF (SOXX), which tracks the performance of the ICE Semiconductor Index.