Analog Devices(ADI)

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Analog Devices (ADI) Upgraded to Buy: What Does It Mean for the Stock?
ZACKS· 2025-05-26 17:05
Core Viewpoint - Analog Devices (ADI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to buying or selling actions that affect stock prices [4]. Company Performance Indicators - For the fiscal year ending October 2025, Analog Devices is projected to earn $7.26 per share, reflecting a year-over-year increase of 13.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Analog Devices has risen by 2.1%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Analog Devices to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].
【太平洋科技-每日观点&资讯】(2025-05-26)
远峰电子· 2025-05-25 12:00
行情速递 ① 主板领涨, 格尔软件(+10.01%)/旭光电子(+8.33%)/宝明科技(+8.03%)/梦网科技(+3.68%)/ 金海通(+3.53%)/ ②创业板领涨, 东土科技(+13.22%)/富乐德(+10.67%)/弘景光电(+8.76%)/ ③科创板领涨, 映翰通 (+8.09%)/品高股份 (+7.26%)/艾森股份(+4.15%)/ ④活跃子行业, SW其他通信设备(+2.71%)/SW电子化学品Ⅲ (+0.06%)/ 国内新闻 ① 艾邦半导体网,株洲中车表示/株洲三期于2024年11月份启动建设/2025 年5月/主体厂房封顶/预计2025年下半年启动设备搬入/2025年底有望实现 产线拉通/该项目为8英寸SiC晶圆/ ② 半导体产业纵横,国科微发布公告称/公司正筹划通过发行股份及支付现 金等方式购买资产/并募集配套资金/交易标的为一家从事特种工艺半导体晶 圆代工及定制化芯片代工业务的企业/ ③ 半导体投资联盟,联想公布2025财年第四财季的销售额增长23%/达到约 170亿美元/增幅快于预期/但净利润却暴跌64%/至约9000万美元/低于预 期/这反映了衍生品业务的亏损以及依然低迷的P ...
Analog Devices: Don't Jump On Conclusions From Recent Earnings (Rating Upgrade)
Seeking Alpha· 2025-05-24 12:34
Core Insights - The article discusses the expertise of Vladimir Dimitrov, CFA, who has a background in brand and intangible assets valuation, particularly in the technology, telecom, and banking sectors [1]. Group 1 - Vladimir Dimitrov has worked with some of the largest global brands during his career in London [1]. - He graduated from the London School of Economics and focuses on identifying reasonably priced businesses with sustainable long-term competitive advantages [1].
Analog Devices to Participate in Bernstein Strategic Decisions Conference
Prnewswire· 2025-05-23 20:00
Core Viewpoint - Analog Devices, Inc. will participate in the Bernstein 41st Annual Strategic Decisions Conference, where the Executive Vice President & Chief Financial Officer will discuss business topics and trends [1] Company Overview - Analog Devices, Inc. is a global semiconductor leader with a revenue exceeding $9 billion in FY24 and approximately 24,000 employees worldwide [3] - The company focuses on bridging the physical and digital worlds, enabling advancements in various sectors including digitized factories, mobility, and digital healthcare [3]
Why Analog Devices Stock Fell by More Than 4% Today
The Motley Fool· 2025-05-22 21:06
Core Insights - Analog Devices (ADI) reported strong quarterly earnings, with revenue of $2.64 billion, a 22% increase year over year, and net income nearly doubling to just under $570 million, reflecting robust performance despite market concerns [2][4] - The stock price fell over 4% following the earnings report, attributed to investor worries about the impact of ongoing tariff wars on the company's fundamentals [1][4] Financial Performance - For fiscal Q2 2025, Analog Devices achieved revenue of $2.64 billion, surpassing analyst expectations of $2.51 billion [2][4] - Net income grew by almost 89% to just under $570 million, with adjusted earnings per share rising to $1.85 from $1.40 in the same period of fiscal 2024, exceeding the consensus estimate of $1.70 [2][4] Business Segments - The automotive systems segment generated nearly $850 million in revenue, growing by 24% year over year, partly due to increased demand linked to anticipated tariffs [5][6] - The personal electronics segment also experienced similar demand fluctuations, raising concerns about the sustainability of this growth [6] Future Outlook - The company provided guidance for the third fiscal quarter, projecting revenue between $2.65 billion and $2.85 billion, with adjusted net income expected to be between $1.82 and $2.02 per share [7] - Analysts' average estimates for the upcoming quarter are $2.62 billion in revenue and $1.82 per share for adjusted profitability [7]
Analog Devices Q2 Earnings Top Forecasts
The Motley Fool· 2025-05-22 19:27
Core Insights - Analog Devices, Inc. reported Q2 FY2025 earnings with revenue of $2.64 billion, reflecting a 22% year-over-year increase and a 9% sequential growth, alongside a non-GAAP EPS of $1.85, exceeding guidance expectations [1] Group 1: Financial Performance - The company anticipates Q3 FY2025 revenue of $2.75 billion (+/- $100 million) and aims to achieve long-term margin and free cash flow targets [2] - Operating margin (non-GAAP) reached 41.2%, with gross margin (non-GAAP) climbing to 69.4% (+60bps sequentially) [7] - Adjusted EPS for Q3 FY2025 is projected at $1.92 (+/- $0.10) [10] Group 2: Supply Chain and Manufacturing - Recent capital expenditures have significantly increased manufacturing capacity, now exceeding twice pre-pandemic levels, enhancing geographic flexibility [3] - The company has cross-qualified a substantial portion of its product portfolio, allowing for rapid production shifts across various geographies, thus reducing supply risk [4] Group 3: Market Dynamics - The industrial segment accounted for 44% of revenue, with an 8% sequential growth and a 17% year-over-year increase, driven by broad-based recovery [5] - The company has been under-shipping to the industrial segment, creating pent-up demand as customer inventories remain constrained [6] Group 4: Strategic Outlook - Management emphasizes ongoing investments in R&D, particularly in analog, power management, digital, and software capabilities, aligning operational expenditures with innovation priorities [8] - The company reaffirms confidence that FY2024 marked the revenue trough, citing lean channel inventories and increasing backlog [10]
Analog Devices Q2 Earnings Beat Estimates, Revenues Rise Y/Y
ZACKS· 2025-05-22 15:46
Core Viewpoint - Analog Devices (ADI) reported strong financial results for the second quarter of fiscal 2025, with earnings and revenues exceeding market expectations, driven by robust performance across various end markets. Financial Performance - Non-GAAP earnings for Q2 fiscal 2025 were $1.85 per share, surpassing the Zacks Consensus Estimate by 9.5%, and up from $1.40 per share in the same quarter last year [1] - Revenues reached $2.64 billion, exceeding the Zacks Consensus Estimate by 5.51%, and increased from $2.16 billion year-over-year [2] Segment Performance - Industrial segment revenues were $1.16 billion, accounting for 44% of total revenues, reflecting a 17% year-over-year increase and beating the Zacks Consensus Estimate of $1.15 billion [3] - Automotive segment revenues were $849.5 million, representing 32% of total revenue, with a 24% year-over-year growth, surpassing the Zacks Consensus Estimate of $758.6 million [3] - Consumer segment generated $317.8 million (12% of revenue), marking a 30% increase year-over-year, beating the Zacks Consensus Estimate of $315.4 million [4] - Communications segment revenues were $315.1 million, also 12% of total revenues, with a 32% increase from the prior year, exceeding the Zacks Consensus Estimate of $279.9 million [4] Margins and Cash Flow - Adjusted gross margin expanded by 270 basis points to 69.4%, while adjusted operating margin increased by 220 basis points to 41.2% year-over-year [5] - As of May 3, 2025, cash and cash equivalents were $2.38 billion, down from $2.72 billion as of February 1, 2025; long-term debt rose slightly to $6.65 billion [6] - Operating cash flow was $819 million, and free cash flow was $729 million during the second quarter [6] Shareholder Returns - ADI returned $740 million to shareholders, which included $491 million in dividends and $249 million in share repurchases [7] Guidance - For Q3 fiscal 2025, management expects net sales of $2.75 billion (+/- $100 million), indicating a year-over-year growth of 12.8%, with a non-GAAP operating margin forecast of 41.5% (+/- 100 bps) [8] - Non-GAAP earnings are projected to be $1.92 (+/- 10 cents) per share, with the consensus estimate at $1.80 per share, reflecting a year-over-year rise of 13.9% [9]
Analog Devices(ADI) - 2025 Q2 - Earnings Call Transcript
2025-05-22 15:02
Financial Data and Key Metrics Changes - Second quarter revenue reached $2.64 billion, exceeding expectations, with a 9% sequential increase and a 22% year-over-year growth [19][22] - Gross margin was 69.4%, up 60 basis points sequentially, driven by higher utilization [21] - Operating margin was 41.2%, with operating expenses at $744 million, an increase of $57 million sequentially [22][23] - EPS was $1.85, up 32% year-over-year, surpassing the high end of the guided range [22] Business Line Data and Key Metrics Changes - Industrial segment accounted for 44% of revenue, up 8% sequentially and 17% year-over-year, with strong growth in aerospace and defense [19] - Automotive represented 32% of revenue, with a record result showing a 16% sequential increase and 24% year-over-year growth, driven by demand in China [20] - Communications made up 12% of revenue, increasing 5% sequentially and 32% year-over-year, with strong growth in wireline and data center [20] - Consumer segment also represented 12% of revenue, remaining flat sequentially but up 30% year-over-year [21] Market Data and Key Metrics Changes - Bookings grew sequentially across all end markets and geographies, with a backlog entering Q3 higher than the previous quarter [26] - The automotive market saw a notable increase in sales, particularly in North America and Europe, attributed to tariff-related pull-in activity [31][32] - Industrial automation showed positive book-to-bill ratios, indicating continued growth despite tariff uncertainties [45][47] Company Strategy and Development Direction - The company is focusing on five key megatrends: autonomy, proactive healthcare, energy transition and sustainability, immersive experience, and AI-driven computing and connectivity [13][14] - Significant investments in CapEx have been made to enhance manufacturing capabilities and supply chain resilience [12][19] - The company aims to balance lean channel inventories with higher levels of inventory on its balance sheet to support recovery [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that revenues bottomed in 2024 and are returning to growth in fiscal 2025 [11][12] - The operating environment remains volatile due to tariff situations, but the company is optimistic about demand across its product portfolio [11][25] - Future guidance for Q3 expects revenue of approximately $2.75 billion, with industrial and consumer segments leading growth [26][27] Other Important Information - The company celebrated its 60th anniversary, a milestone achieved by fewer than 1% of public companies [17] - Free cash flow over the trailing twelve months was $3.3 billion, representing 34% of revenue, with nearly $2.5 billion returned to shareholders [24] Q&A Session Summary Question: What is driving the strong growth in automotive? - Management noted that Q2 was stronger than expected, with bookings and turns higher than normal, aided by pull-in activity around tariff announcements [30][31] Question: How much under shipping demand is the company experiencing? - Management estimated that they are shipping about 10% below end consumption, with expectations to normalize in Q3 [39] Question: What is the outlook for industrial automation? - Management reported continued growth in industrial automation, with positive book-to-bill ratios across all subsectors [45][47] Question: How is the company addressing supply chain and foundry diversity? - The company has significantly increased its internal capacity and is focusing on a flexible approach between internal and external manufacturing [93][95] Question: What are the expectations for SAAR and auto builds in the second half of the year? - Management expects SAAR to decline in the second half, but anticipates continued growth in content to offset some of that pressure [74]
Analog Devices(ADI) - 2025 Q2 - Earnings Call Transcript
2025-05-22 15:00
Financial Data and Key Metrics Changes - Second quarter revenue reached $2.64 billion, exceeding expectations, with a 9% sequential increase and a 22% year-over-year growth [16] - Gross margin was 69.4%, up 60 basis points sequentially, driven by higher utilization [18] - Operating margin was 41.2%, with EPS at $1.85, reflecting a 32% year-over-year increase [19] - Free cash flow over the trailing twelve months was $3.3 billion, or 34% of revenue [21] Business Line Data and Key Metrics Changes - Industrial segment accounted for 44% of revenue, up 8% sequentially and 17% year-over-year [16] - Automotive segment represented 32% of revenue, with a 16% sequential increase and 24% year-over-year growth, driven by strong demand in China [17] - Communications segment made up 12% of revenue, increasing 5% sequentially and 32% year-over-year, with strong growth in wireline and data center [18] - Consumer segment also represented 12% of revenue, remaining flat sequentially but up 30% year-over-year [18] Market Data and Key Metrics Changes - Strong growth observed in aerospace and defense and automated test equipment (ATE) within the industrial market [16] - Automotive demand in North America and Europe increased by approximately 20% sequentially due to tariff-related pull-in activity [28] - Overall bookings grew sequentially across all end markets and geographies, with a backlog entering Q3 higher than the previous quarter [22] Company Strategy and Development Direction - Company is focusing on five key megatrends: autonomy, proactive healthcare, energy transition and sustainability, immersive experience, and AI-driven computing and connectivity [10] - Significant investments in capital expenditures to enhance and scale hybrid manufacturing models, expanding capacity in the US and Europe [9] - Emphasis on delivering complete solutions to customers, leveraging extensive product portfolio and technological expertise [11] Management's Comments on Operating Environment and Future Outlook - Management believes revenue bottomed in 2024 and is returning to growth in fiscal 2025, supported by favorable demand trends [8] - The company is maintaining a strategy of balancing lean channel inventories with higher levels of inventory on the balance sheet [20] - Management expects third quarter revenue to be approximately $2.75 billion, with industrial and consumer segments leading growth [22] Other Important Information - The company celebrated its 60th anniversary, a milestone achieved by fewer than 1% of public companies [14] - Management highlighted the importance of adapting to business transitions early and focusing capital investments to maximize value [9] Q&A Session Summary Question: What is driving the strong growth in automotive? - Management noted that Q2 was stronger than expected, with bookings and turns significantly higher, aided by pull-in activity related to tariffs [28] Question: How much is the company under shipping demand currently? - Management estimated that they are shipping approximately 10% below end consumption, with expectations to normalize in Q3 [36] Question: What is the outlook for industrial automation? - Management reported continued growth in industrial automation, with positive book-to-bill ratios across all subsectors [41] Question: How is the company addressing supply chain and foundry diversity? - The company has increased internal capacity significantly and is also partnering with external foundries to ensure flexibility and resilience [92]
Analog Devices (ADI) Q2 Earnings and Revenues Top Estimates
ZACKS· 2025-05-22 13:16
Group 1: Earnings Performance - Analog Devices (ADI) reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.69 per share, and up from $1.40 per share a year ago, representing an earnings surprise of 9.47% [1] - The company posted revenues of $2.64 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 5.51%, compared to $2.16 billion in the same quarter last year [2] - Over the last four quarters, Analog Devices has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - Analog Devices shares have increased approximately 4.6% since the beginning of the year, while the S&P 500 has declined by 0.6% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $2.61 billion, and for the current fiscal year, it is $7.11 on revenues of $10.27 billion [7] Group 3: Industry Context - The Semiconductor - Analog and Mixed industry is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]