Core Insights - Analog Devices (ADI) reported revenue of $2.42 billion for the quarter ended January 2025, reflecting a year-over-year decline of 3.6% and an EPS of $1.63 compared to $1.73 a year ago, with a revenue surprise of +2.79% over the Zacks Consensus Estimate of $2.36 billion and an EPS surprise of +5.84% over the consensus estimate of $1.54 [1] Revenue Performance by End Market - Consumer revenue was $322.90 million, slightly above the nine-analyst average estimate of $322.60 million, showing a year-over-year increase of +17.8% [4] - Communications revenue reached $289.86 million, exceeding the nine-analyst average estimate of $271.98 million, but reflecting a year-over-year decline of -4.2% [4] - Automotive revenue was $732.51 million, surpassing the average estimate of $711.51 million, with a year-over-year change of -0.9% [4] - Industrial revenue totaled $1.08 billion, above the nine-analyst average estimate of $1.05 billion, indicating a year-over-year decline of -9.9% [4] Stock Performance - Shares of Analog Devices have returned -0.6% over the past month, in contrast to the Zacks S&P 500 composite's +4.7% change, with the stock currently holding a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - Analog Devices surpassed earnings expectations for Q1 2025 but reported a decline in revenue and profits compared to the previous year [1][2] - Actual revenue was $2.423 billion, exceeding the estimate of $2.360 billion, while adjusted EPS was $1.63, above the anticipated $1.54 but lower than the previous year's $1.73 [2][3] Financial Performance - Adjusted EPS for Q1 2025 was $1.63, down 5.8% from $1.73 in Q1 2024 [3] - Revenue decreased by 3.6% year-over-year from $2.513 billion in Q1 2024 to $2.423 billion in Q1 2025 [3] - Adjusted operating margin fell to 40.5%, down from 42.0% in the previous year [3] - Free cash flow reached $978 million, indicating strong cash generation capabilities [3][8] Business Segments - The industrial segment, contributing 44% of overall revenue, experienced a significant 10% decline due to macroeconomic pressures [6] - The automotive segment saw a revenue decrease of 2% year-over-year, totaling $732.5 million [6] - In contrast, the consumer segment grew by 19%, achieving $322.9 million in revenue, reflecting robust market demand [7] - The communications sector's revenue declined by 4%, impacted by reduced demand [7] Strategic Initiatives - The company is focusing on new product launches and strategic partnerships, including innovations like CodeFusion Studio and ADI Assure Trusted Edge Security Architecture [5] - Recent fiscal strategies include an 8% dividend increase and a $10 billion share repurchase authorization, aimed at enhancing shareholder value [5] - Analog Devices is addressing inventory issues affecting performance in key segments and is enhancing product lines to optimize future offerings [9] Future Outlook - The company forecasts second-quarter revenue in the range of $2.50 billion and expects adjusted EPS to grow to $1.68, indicating anticipated improvements in market conditions [11] - Monitoring market receptivity, product innovation pace, and fiscal strategies will be crucial for potential growth as the company navigates evolving market trends [12]

Group 1: Earnings Performance - Analog Devices reported quarterly earnings of $1.63 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, but down from $1.73 per share a year ago, representing an earnings surprise of 5.84% [1] - The company posted revenues of $2.42 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.79%, although this is a decrease from year-ago revenues of $2.51 billion [2] - Over the last four quarters, Analog Devices has consistently surpassed consensus EPS and revenue estimates [2] Group 2: Stock Performance and Outlook - Analog Devices shares have increased by approximately 1% since the beginning of the year, while the S&P 500 has gained 4% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - Current consensus EPS estimate for the upcoming quarter is $1.68 on revenues of $2.47 billion, and for the current fiscal year, it is $7.09 on revenues of $10.17 billion [7] Group 3: Industry Context - The Semiconductor - Analog and Mixed industry is currently ranked in the bottom 12% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Analog Devices' stock performance [5]

Revenue and Income - Revenue for the three months ended February 1, 2025, was $2,423,174, a decrease of 4% compared to $2,512,704 for the same period in the prior fiscal year[56]. - Net income decreased by 15% to $391,316 for the three months ended February 1, 2025, down from $462,727 in the same period last year[73]. - Revenue from the Industrial end market decreased by 10% year-over-year, while Consumer revenue increased by 19%[59][60]. Margins and Expenses - Gross margin percentage increased to 59.0% for the three months ended February 1, 2025, compared to 58.7% for the same period in the prior year[64]. - Research and Development (R&D) expenses were $391,427, a decrease of 3% from $402,892 in the prior year, representing 17% of revenue[65]. - Special charges, net increased significantly by 296% to $63,887 for the three months ended February 1, 2025, compared to $16,140 in the same period last year[69]. - Nonoperating expense decreased to $55,737 for the three months ended February 1, 2025, compared to $72,546 in the same period last year[71]. - Diluted EPS decreased to $0.78 for the three months ended February 1, 2025, down from $0.93 in the same period last year, reflecting a 16% decline[73]. Cash Flow and Investments - Net cash provided by operating activities for the three months ended February 1, 2025, was $1,126.8 million, representing 47% of revenue, compared to $1,138.8 million and 45% of revenue for the same period in fiscal 2024[76]. - Cash used for investing activities decreased to $194.3 million for the three months ended February 1, 2025, down from $219.1 million in the same period of the prior fiscal year, primarily due to reduced capital expenditures[76][79]. - Capital expenditures for the first three months of fiscal 2025 were $149.0 million, with expectations for annual capital expenditures to be between 4% and 6% of fiscal 2025 revenue[91]. Balance Sheet and Liabilities - As of February 1, 2025, the company had $2.7 billion in cash, cash equivalents, and short-term investments, with approximately $1.4 billion held in the United States[74]. - Total debt obligations as of February 1, 2025, amounted to $7.67 billion, with various notes maturing between 2025 and 2054[85]. - Current liabilities decreased to $2,971.0 million as of February 1, 2025, compared to $2,988.3 million at the end of fiscal 2024[83]. Shareholder Returns and Stock Repurchase - The company declared a cash dividend of $0.99 per share, expected to total approximately $491.0 million, payable on March 17, 2025[92]. - The company has $1.5 billion remaining available for stock repurchases under its authorized program, with an additional $10.0 billion authorized on February 18, 2025[89][90]. Inventory and Receivables - Accounts receivable decreased by $143.9 million to $1,192.4 million, reflecting variations in the timing of collections and decreased revenue levels[81][82]. - Inventory increased by 2% to $1,474.7 million, driven by efforts to balance manufacturing production and demand[81][82]. Taxation - The effective income tax rate for the three months ended February 1, 2025, was 10.2%, slightly higher than 9.9% for the same period in the prior year[72]. - The percentage of total revenue from distributors decreased to 57% in the three months ended February 1, 2025, down from 61% in the prior year[62].

Revenue Performance - Revenue for the first quarter of fiscal 2025 was $2.423 billion, a decrease of 4% year-over-year from $2.513 billion[5] - Revenue for the three months ended February 1, 2025, was $2,423,174, a decrease of 4% compared to $2,512,704 for the same period in 2024[24] - Reported revenue for the three months ending May 3, 2025, was $2.5 billion, with an adjustment range of +/- $100 million[36] Profitability Metrics - Gross margin was $1.430 billion, with a gross margin percentage of 59.0%, up 30 basis points from 58.7% in the prior year[5] - Operating income decreased by 16% to $491 million, resulting in an operating margin of 20.3%, down 300 basis points year-over-year[5] - Net income decreased to $391,316, resulting in diluted earnings per share of $0.78, down from $0.93 in the previous year[24] - Operating margin reported at 24.2%, with an adjusted margin of 40.5%, including $406 million of acquisition-related expenses[36] Earnings Per Share - Diluted earnings per share (EPS) for the quarter was $0.78, a decline of 16% compared to $0.93 in the same quarter last year[5] - Adjusted diluted EPS for the second quarter is projected to be $1.68, with a margin of error of +/- $0.10[7] - Earnings per share reported at $0.97, with an adjusted EPS of $1.68, reflecting $0.71 from acquisition-related adjustments[36][37] Cash Flow and Dividends - Operating cash flow for the trailing twelve months was $3.8 billion, with free cash flow of $3.2 billion[4] - Free cash flow for the three months ended February 1, 2025, was $977,831, representing 40% of revenue[34] - The company raised its quarterly dividend by 8% to $0.99, marking the 21st consecutive year of increases[4] Shareholder Returns - The company increased its share repurchase authorization by $10 billion, bringing the total remaining authorization to approximately $11.5 billion[4] Sector Performance - Bookings showed gradual improvement, particularly in the Industrial and Automotive sectors, positioning the company for sequential and year-over-year growth[3] - The company reported a 10% decline in revenue from the industrial sector, which accounted for 44% of total revenue[31] - The automotive sector revenue decreased by 2%, maintaining a 30% share of total revenue[31] Expenses and Assets - Operating expenses totaled $938,990, which is 38.8% of revenue, up from 35.3% in the same period last year[33] - Cash and cash equivalents increased to $2,349,994 from $1,991,342 at the end of the previous quarter[28] - Total current assets rose to $5,733,076, compared to $5,484,654 in the prior quarter[26] - The company made payments for acquisitions totaling $45,652 during the quarter[28] Tax and Nonoperating Expenses - Nonoperating expenses were approximately $60 million, consistent across reported and adjusted figures[36] - Tax rate maintained between 11% and 13%, including $53 million of tax effects from acquisition-related adjustments[37]

Revenue of more than $2.4 billion, with sequential growth in Industrial, Automotive, and Communications, and double-digit year-over-year growth in Consumer Operating cash flow of $3.8 billion and free cash flow of $3.2 billion on a trailing twelve-month basis Raised quarterly dividend 8% to $0.99, marking twenty-one consecutive years of increases Increased share repurchase authorization by $10.0 billion, bringing total remaining authorization to approximately $11.5 billionWILMINGTON, Mass., Feb. 19, 2025 / ...

WILMINGTON, Mass., Feb. 18, 2025 /PRNewswire/ -- Analog Devices, Inc. (NASDAQ: ADI), a global semiconductor leader, today announced that its Board of Directors voted to increase its quarterly dividend by 8% to $0.99 per outstanding share of common stock, marking twenty-one consecutive years of higher dividends. Additionally, the Board of Directors authorized the company to repurchase an additional $10.0 billion of its common stock, bringing the total remaining share repurchase authorization to approximately ...

Analog Devices, Inc. (ADI) is set to report first-quarter fiscal 2025 results on Feb. 19.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Analog Devices expects revenues of $2.35 billion (+/- $100 million). The Zacks Consensus Estimate is pegged at $2.36 billion, indicating a decline of 6.8% from the year-ago quarter’s figure.ADI anticipates adjusted earnings per share of $1.53 (+/- $0.10). The consensus mark for earnings is pinned at $1.54 per share, indicating an 11% fall from the ...

Wall Street analysts expect Analog Devices (ADI) to post quarterly earnings of $1.54 per share in its upcoming report, which indicates a year-over-year decline of 11%. Revenues are expected to be $2.36 billion, down 6.2% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's earnings announcement, it is ...

Analog Devices (ADI) closed at $204.86 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.98%.Coming into today, shares of the semiconductor maker had lost 3.37% in the past month. In that same time, the Computer and Technology sector lost 0.79%, while the S&P 500 gained 2.07%.Market participants will be closely following the financial results of Analog Devices i ...